Global Casino Market Poised to Grow by $43 Billion Over Five Years, Report Claims
Fueled by rising consumer expenditure, the global casino gaming market is set to expand by $43.3 billion over the five years from 2024 to 2028, reflecting a compound annual growth rate (CAGR) of 3.2%, as stated in a new report by Technavio.
The heightened social media activities of gaming companies may serve as triggers for more visits to physical casinos, while also creating opportunities to enhance engagement on online gaming platforms, such as online casinos and sportsbooks.
"In today’s digital age, social media marketing has become a crucial tool for casino operators to attract and engage customers. With the widespread use of smartphones and enhanced internet connectivity, social media platforms like Facebook, Twitter, Pinterest, Instagram, and YouTube have gained immense popularity among consumers,” notes Technavio.
Utilizing social media has proven beneficial in attracting millennials and Gen Z to the iGaming and online sports betting realms, yet industry experts think additional efforts are necessary to transform these groups into loyal patrons of physical casinos.
Technology Leading Casino Market Expansion
Alongside social media, essential technology is anticipated to play a role in the expansion of the casino market in the years ahead. This encompasses gaming firms enhancing their utilization of artificial intelligence (AI) and cloud-based applications.
Technavio also emphasized the opportunity for operators of terrestrial gaming establishments to enhance their utilization of electronic gaming machines (EGM). The era has passed when machines were merely slots or video poker. Currently, electronic gaming machines feature table games like blackjack and roulette in a machine format. Players appreciate the variety and lower minimum stakes offered by EGM table games, while operators benefit from decreased labor expenses.
Technavio also noted that nongaming facilities and greater acceptance of cryptocurrency could serve as potential long-term growth catalysts for the gaming sector.
“Demographics, live shows, concerts, fine dining, hotels, restaurants, entertainment, and gaming technology are essential components of the industry,” observes the research firm. “Mobile phones and blockchain technology, including cryptocurrency, are transforming online sports betting. Regardless of the platform, ensuring responsible gambling practices remains a priority.”
Cybersecurity Takes Center Stage
As casino operators manage substantial volumes of critical customer data, such as bank and credit card details, enhancing cybersecurity measures is crucial for protecting this information and building trust with customers.
"Casino gaming companies prioritize the security of their customers’ financial information when accepting payments via credit or debit cards. Compliance with the Payment Card Industry Data Security Standard (PCI DSS) is essential to secure cardholder data and reduce financial fraud,” according to Technavio.
The sector's push to strengthen cyber defenses is scrutinized after the 2023 hacks of Caesars Entertainment and MGM Resorts International, with the latter significantly disrupting operations for over a week and resulting in over $100 million in losses.
