Should you invest in casino properties? Here are 5 factors to keep in mind

By
Services for Real Estate Pros with Representative

As far as commercial real estate properties go, casinos are perhaps one of the most divisive topics. On the one hand, there are those who say that these properties have generated incredible returns and managed to drive profits even in the most turbulent economic periods. On the other hand, skeptics say that investing in casino properties is a gamble in itself and that the rise of online casinos may mark an uncertain future for this sub-area.

In reality, both sides have some truth to them. As you very well know, nothing should be taken for granted in real estate, and the moves of the market sometimes cannot be predicted. Certain types of properties can over or underperform, seemingly at random, and it takes an incredibly careful and analytical mind to overcome uncertain factors. Online casinos have, in fact, changed the way casino properties are sold. Digital transformation hasn’t skipped the casino industry and, thanks to innovative features such as online slots and bonuses, more people are choosing to play from their smartphones instead of going to a land-based casino. It’s simple, convenient, safe, and you have lots of diversity. For example, playing online roulette with N1 casino is just as fun as playing in a brick-and-mortar casino.

At the same time, the rise of online slots and casinos, in general, doesn’t mean that the casino real estate market is dead and that casino investments are obsolete. On the contrary, some properties continue to thrive, but it would be a missed opportunity to ignore them if you have the chance to invest. The balance lies somewhere in the middle. It’s true that the online slots industry has made some land-based venues close their doors and raised the bar in terms of what a successful casino should look like. This means that now, if you want to invest in casino properties, success isn’t guaranteed, and you will have to pay attention to a few factors in advance.

1.      What are the gambling regulations in your area?

The first thing you should keep in mind before investing in casino real estate is the regulatory environment. What do local legislators have to say about it? Is it allowed and encouraged, or is it still somewhat of a grey area and might be banned soon? When you make an investment of this type, you’re making it for years to come, so ask yourself not just what the legal status of casino properties is now but also what it might be in the following five years and beyond. For example, the US, Germany, and the Netherlands are countries where gambling plays a major role in the local economy and where there will be heavy investments in this sector. Countries that are considering legalizing gambling might also hold some potential. But if we’re talking about a country where the legal status of gambling is somewhat complicated, and casino games aren’t a part of the local culture, then it’s probably best to skip.

2.      Real estate and tourism go hand in hand.

After you’ve established that the regulatory framework favors casino investments, the next question to ask is whether the local tourism industry is developed enough. How are the two related? Well, the more tourists a city gets, the busier the casinos will be. People like gambling while on holiday, and even though they play online slots at home, they won’t resist the temptation of going into an online casino simply because it’s fun and exhilarating. There’s a reason why cities like Las Vegas are a mecca for tourists. Passionate gamblers will enter these casinos, but many clients are beginners who are simply attracted by the glamor of it all. So, before investing in casino properties, find out how much interest the city gets. Also, if the property is located close to the airport, hotel resort, or famous landmarks, so much the better.

3.      Economic outlook

Even though the regulatory environment favors gambling, some areas may not be recommended for casino real estate investments because the economic outlook isn’t too positive. If you want to find a buy or rent the property as quickly as possible, then the best course of action is to look at an area with good economic prospects, where residents have medium to high income. It also helps to look at the history of other commercial properties in the area. How long do they stay on the market before some puts down an offer? How well do businesses do there? If you bought the property in a neighborhood where businesses close down after six months or so, then generating ROI could be problematic. And here we’ll have to go back to the importance of research before buying any kind of property, casino or not. Play to your strengths and only buy property in areas you know well. Otherwise, that seemingly unbeatable deal could pose some bad surprises.

4.      What operators are there in the area?

Looking at what operators there are in your area is important for two reasons. First of all, you will understand what the quality standards are, what players expect, and what operators are ready to offer them. Alternatively, you can also find here the best information about online slots to find out how online casinos have redefined quality standards and what land-based casinos have to offer in order to stand out. Second of all, it’s important to make a list of the other operators in the area so that you know who your competition is. For example, if right next to the property you are going to buy, there is also a well-established operator, people might not want to move there because they would believe they don’t stand a chance.

5.      Architectural uniqueness and why it matters for casino properties

Last but not least, the success of a casino property is also somewhat dependent on the architecture of the building. If online platforms such as N1 casino count on intuitive user experiences and quality web design to stand out and attract users, for brick-and-mortar operators, it’s a bit more complicated. Statistically, casinos that are located in beautiful neighborhoods or in buildings with interesting architecture (such as historical buildings, for example) tend to attract more clients. These casinos are also more glamorous, are a magnet for tourists, and get a lot of traffic.

Comments (5)

Bill Salvatore - YVP Blog
Arizona Elite Properties - Chandler, AZ
Realtor - Valley of the Sun / golfArizona@cox.net

Great information, thanks for sharing.  Make it a great one.  Bill Salvatore

Mar 16, 2021 06:36 AM
Rick Flint

Offline casino? Is it still relevant today?

Apr 16, 2021 09:17 AM
Frenki Lampard

Well, I have several opinions and can't still decide what is my final attitude to that question. Last year changed our lives. It influenced all the business spheres a lot. And the casino is not an exception. A lot of casinos moved online and there are a lot of new gambling projects. I haven't tried playing there as I prefer this website for a while. But, to be honest, I don't think that real casinos will be as popular as they were in the past.

Apr 21, 2021 02:57 AM
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Apr 22, 2021 03:09 AM
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Apr 22, 2021 03:11 AM