US Casino Operators Target Asia as Top Destination for Investment
A recent study conducted by CIT Group has revealed that entrepreneurs who want to start land based casinos are looking toward destinations in Asia for investing in this type of business venture.
Macau, the gambling mecca of Asia, has already succeeded in surpassing Las Vegas in terms of gaming revenue, but operators are also looking to invest in destinations such as South Korea, the Philippines, Japan, Vietnam or Singapore.
Taking into consideration that the US land-based gaming industry is already fully saturated, entrepreneurs are looking for profitable opportunities in the Asian market. It has been reported that US operators who want to start land based casinos are starting to face a lot of pressure from the competition. Even so, gaming companies are still continuing to provide gambling solutions for US residents, which results in an expansion of the industry that increases the competition even more.
The study also revealed that gaming is becoming more important to states, considering that revenue streams and budgets are becoming tighter. Operators who started land based casinos in the past, and became part of the traditional gaming market, are now starting to lose exclusivity within their markets.
For example, Pennsylvania’s new brick-and-mortar casinos are becoming the main competition for Connecticut casinos, which feel pressured by the new investments in neighboring states. More than that, the recession has also pushed mass market casino customers to gamble less.
Like so, operators who are looking to start land based casinos are considering moving their businesses to Asian destinations. Macau, which is the current top Asian gambling location for high rollers, is expected to open up more to middle-class players in the years to come. More than that, Japan is about to pass legislation that would legalize land-based gaming in the country.
BY CASINOWEBSCRIPTS PUBLISHED 18 June 2014