Investing in real estate is like gambling. You put money on a property hoping its value grows and you gain revenue. Of course, that real estate agents base their investments on strategies, but so do gamblers. But no strategy or tactic can guarantee a win, no matter how seasoned the investor or gambler is. No one can make it big in these sectors without having the heart to take up risks. But if real estate agents and gamblers are risk-taker, how can we name someone who invests in casino property? The real estate market is already volatile, and when one adds the factor of casinos to it, it becomes quite erratic.
So why would someone bring these two domains together?
Land-based casinos are still popular despite the increasing demand for online gambling
Online casinos have registered considerable growth recently (the global online gambling market is expected to grow at a rate of 13.2% and reach $92.2 billion by 2023) with the Internet available worldwide. Last year, the online casino market, in Europe alone, reached a GGR of €24.7 billion.
Players find it easier to place a bet online than taking a seat at a brick-and-mortar facility. But even if online casinos offer many benefits, land-based casinos still attract a large portion of the market. Online gambling is more challenging to control than physical betting where players can put strict control on their actions and interpret the other players' reactions. At the end of the day, in a land-based casino, people bet against other players, but they bet against the house in an online casino.
Also, visiting a land-based facility like Betchan casino offers them a more social experience, they cannot get even if they embrace a technological development like a live casino.
It makes more sense for an investor to put money in a land-based casino, as regulations begin to limit online casinos.
All gambling activities require a certain amount of regulation, but it looks like some countries are taking things too far when it comes to online casinos. Changes to the law, meaning people aren't allowed to gamble online or use their credit cards to make deposits into their casino accounts can convince gamblers to turn their attention towards land-based facilities. Most online casinos set bet limits for their users, and this is no good news for high rollers who prefer to visit a land-based casino that allows them to double or even triple their deposits. When registering with an operator like Betchan Casino people read the Betchan Casino information guide to determine if it puts limits to the amount they can gamble. The information guides or customer rules can also delay the moment the customer receives the winnings in their bank account. But after a night out at a land-based casino, guests walk away with their pockets filled with the money they win.
Online casinos also fail to compete with the glitz and glamour and free entertainment brick-and-mortar facilities display. It's common for hosts to organise private parties and entertain their guests with live music and the chance to meet high rollers.
Caesars/Eldorado deal is proof that it's worth to take a bet in the casino property investment market.
American casinos unlock value in the real estate sector through mergers and acquisitions. Operators are splitting the land on which their facilities sit and take advantage of entrepreneurs willing to take advantage of share prices. When Caesars filed for bankruptcy in 2015, savvy investors who believed in land-based gambling's power invested money to save the historical casino. Vici Properties, a real estate investment trust purchased the land and buildings of multiple Caesar properties throughout the USA, and lease the facilities to Caesars OpCo (the reorganised casino business structure of the old Caesars CMBS) to manage it. Vici Properties gets $800m annually from rent.
But the USA isn't the only lucrative casino real estate market in the world, China, Australia, and Europe are other locations where it's worth to build a land-based casino. When planning to set a brick-and-mortar facility for an operator like Betchan Casino, it's smart first to read a Betchan Casino review explained to determine if it has the potential to generate revenue.
Top locations for casino real estate investment
The market size of the gambling industry (online and offline) reached $227 billion in 2020. Even if the brick-and-mortar casino industry still experiences some challenges from the restrictions the pandemic imposed, some locations are still worthwhile to invest. One would think that when it comes to gambling, all locations are equal because players battle against the odds, but some countries have risen up to be more popular than others.
When investors are looking for a place to open a new casino, they often pick one of these top gambling centres. Due to a mix between effective promotions, innovation, and relaxed regulations, Macau, USA, UK, Australia, and Canada have become the world gambling leaders. But as one can expect, to start a venture in a gambling guru location, it's more than challenging, and only a high roller would afford the financial effort.
Macau – Gambling continues to be illegal in mainland China, but Macau is the new and improved Las Vegas. Las Vegas remains the USA's gambling capital, but the centre of the global gambling industry moved to Macau from 2006. After a massive wave of openings, it has earned the status of the largest casino market in the world, registering $36 billion in 2019.
USA – the gambling industry in the USA holds 1.8 million jobs with $79$.42 billion in revenue.
The UK – The UK market has a relaxed gambling legislation, and therefore the industry is steadily evolving. The British gambling market registered £14.4 billion only in 2018, with 32% of the population playing casino games weekly.
Australia - a recent study revealed that Australians bet more than any other nation, spending $18 billion annually on this habit. With 80% of the Australian population playing online or offline games, the country is the perfect land to start a new casino.
Canada – Canada has a liberal approach to most endeavours, including gambling. It gains CA$17.3 billion in revenue annually from casino games with the industry growing steadily.
Real estate and casinos can have a quite amazing relationship as long as the investor knows how to exploit the benefits both industries offer. All industries come with challenges, but pure genius knowledge lies in taking the biggest gamble in the real estate sector and winning it.