China Changes in Governmental Reform to Boost Gambling Market
Casino software companies and casino operators should know that the recent changes in China’s governmental reforms and consumer behavior are starting to put their mark on several industries in the country, including the gambling industry. Even though China is still recognized as an emerging market, investors are starting to consider it one of the leading countries suitable for business development and growth.
Despite the fact that online gambling in China is currently not accepting online casino solutions, casino software companies and land-based casino operators should prepare for new changes in this fast-growing economy. Asia is currently the leader in mobile gaming growth, with Hong Kong having one of the best internet infrastructures worldwide. Internet download speeds in this region are no less than three times faster than those in the United States. More than that, mobile gaming in China is expected to have a global market share of 26 percent by 2016, compared to the 19 percent share expected for the United States.
Casino software companies and casino operators can currently focus on the brick-and-mortar sector of the industry. In 2013, the Asian market has raked in $63 million in revenue from its land-based casinos or integrated resorts. Furthermore, the industry could even surpass the US gaming market by 2018, when the Asian casino market would generate up to $110 billion.
Recent news have revealed that the country’s nominal GDP would grow significantly during the next 2 years, which means that residents will spend more money on travel and leisure. Casino software companies and land-based casino operators should take into consideration that China’s middle class is predicted to triple by 2023, which means that more disposable income would be redirected to more diverse activities such as gambling.
Macau, the gambling capital of China, has already succeeded in surpassing Las Vegas in terms of revenue. Up to now, Macau was mainly visited by high-rollers, due to the fact that hotel rooms and transportation were too expensive for the middle-class customer. However, the rapidly developing transportation infrastructure in the region would bring a lot more mass-market casino players to Macau. At this point in time, the easiest and cheapest way for middle-class customers to reach Macau is by ferry. Unfortunately, the ride lasts for one hour. With a new bridge, which is expected to be complete soon, gaming enthusiasts will easily get from Honk Kong to Macau within 20 minutes.
Casino software companies and gambling operators might like to know that even though Macau remains Asia’s gambling capital, the gaming industry in Cambodia and the Republic of Korea are also expected to increase rapidly in the following years. Regulatory requirements in these two countries are less restrictive, with a long duration of gaming licenses and a limitless number of table games and slot machines. Japan, which could legalize gambling in the near future, would represent fierce competition for the gambling market in China.
Until then, Macau is preparing to welcome middle-class players, especially once the new transportation developments are complete, sometimes between 2015 and 2016.
BY CASINOWEBSCRIPTS PUBLISHED 10 June 2014