How Can Land-Based Casinos Impact the Real Estate Market?

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Services for Real Estate Pros with Representative

There’s no news. The real estate market is ever-changing and even unstable. There is not a single realtor who could predict this market’s future – as its value constantly fluctuates. Not to mention that claiming such a thing would be equal to gambling.  

While it’s realistically possible to make an educated guess, a real estate investment requires energy to overcome potential risks and volatilizes. Why? Because some factors are indirectly affecting transaction volumes.

In the last couple of years, many countries have legalized casino gambling in an effort to skyrocket tax revenue. Land-based casinos have risen, with a great majority located in urban areas. We’re currently seeing top gambling destinations in Macau, Singapore, Monte Carlo, New Jersey, and Amsterdam. With land-based gambling opportunities becoming more widely available, some still prefer online alternatives like casinos Colombianos online.

The financial and social impact of land-based casinos has been a long-debated problem. So far, experts have not reached an agreement regarding the bottom line of the casino gambling industry. What we know is that the location of a land-based casino brings both negative and positive outcomes as far as residential establishments are concerned.

As for real estate investment – it’s nothing more than wagering in what direction the market is heading. This post attempts to understand the impact of land-based casinos on property markets.

Land-based Casinos Positively Impact the Surrounding Housing Prices

Contrary to most inexperienced beliefs, casinos aren’t only about gambling. A great majority of land-based casinos make accessible additional services for gamblers, such as eateries and bars, suites and hotel rooms, and even a wide range of entertainment acts such as concerts or stand-up comedy. They provide customers with a great experience, one that they’re unlikely to forget too soon.

As a matter of fact, there are lots of advantages in terms of proximity - land-based establishments tend to deliver commercial convenience, which indirectly affects the market value of surrounding buildings. Some of these houses enjoy a boost in property value if they’re placed right next to a casino establishment, while others endure a negative externality.

For instance, living near a casino might be a good-looking proposition for some home buyers, while for others, it’s a complete nightmare. When you come to think about it, it’s perfectly logical. There’s ongoing congestion, traffic, noise, and so on. Not to mention the views aren’t like those in Venice. Plus, not everyone is going to pay a premium only to live near a casino, so the house price value will certainly drop.

Most land-based casinos never get built and mostly because local petitions are quite important. Locals acknowledge that once a new casino will be built, everything will change, and they’re not ready for eventual issues that a successful casino could bring.

Land-casinos: All-time High – How may this impact real estate?

The pandemic has significantly impacted the industry on an international level, bringing an end to certain venues and businesses. In order to abide by the latest policies, many land-based casinos have shut down their businesses at the beginning of the global pandemic. Some operators have deemed it safe to open establishments and welcome players, setting a precedent for others. Yet, a great majority don’t want to open only to close their businesses again.

A great majority of operators are attempting or making the transition from land-based to online. Online gambling platforms are slowly but surely dominating the land-based casino world, as the pandemic restrictions are closing even more businesses. Things like game variety, reliability, and inviting bonuses make online gambling platforms so appealing.

Platforms like casinos Colombianos online gratis offer rewarding promotions; gamblers are able to take advantage of bonuses to advance their experience and win exorbitant prizes.

The exodus of physical casinos is reducing rents, emptying commercial space, and triggering a decrease in property value. While it may seem unnecessary, their impact is undeniable. Land-based casinos are either renouncing their permits or operating at a lower capacity due to work from home policies. Landlords who are already struggling with debt will soon be forced to invest in commercial properties, sell at uninviting prices, or simply give up and hand back the keys.

As the “new normalcy” unfolds, lenders and borrowers must reach an agreement about how much the properties are actually worth. Yet, the damage is hard to conceive. Commercial properties are valuable for the local economy as they bring life and vitality back into the town and surround areas. Most states are welcoming casino gambling because it’s a vital tool for financial growth – increased tax revenue, increased employment, and growth in local retail sales.

Online gambling platform operators also play a decisive role in the economy. We can see that from the tax revenues paid, the income generated by online platforms, and the number of new hires.  

In an all-digital environment, it becomes even challenging for land-based casinos to remain lucrative while property markets will undoubtedly create jobs due to changing consumer behavior, which in turn will help other economic sectors to grow. It’s expected that land-based casinos will recover in due time and continue to make a positive impact. Some industry experts state that both land casinos and nearby conveniences who suffered great financial damage are desperate to return to normal. Whether operators feel safe to return to public life is still an open question.

So far, the industry is in the process of imagining a casino experience with social distancing -with roomy casino floors that can accommodate many customers nevertheless.

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