In recent years, companies in virtually every industry have started to shift their focus from physical-first, digital-second businesses to digital-first companies.
Land-based casino operators are no exception. The ambitious but important move came as a result of the ever-changing player habits, with more players than ever now playing online.
The convenience has become one of the most valued aspects in customers’ eyes, and businesses in all industries are forced to pay attention to staying relevant.
The issue of scaling
Every entrepreneur knows that scaling a physical venue is far harder than scaling a digital product/service. Land-based casinos are starting to understand that, instead of driving to a land-based casino (usually located outside the main centre of the city), today’s players prefer the convenience of betting on their phones at any time and from wherever they prefer.
This closely mirrors industries like banking, which have, over the past decade, gone (almost) fully digital.
Gambling companies aiming for long-term success know they must continuously innovate and keep up with trends, rather than remain stuck in outdated ways.
They understand that while land-based casinos are limited by physical space and the number of games they can offer, online casinos can accommodate a virtually unlimited number of players from any location, along with a far broader range of game titles.
Moreover, while the revenue growth of a land-based casino is closely tied to acquiring and setting up new venues, both of which require significant time and money, online casinos can expand almost infinitely, at a much cheaper cost per player.
New games can be launched daily and require zero physical installation or subsequent maintenance, and the player’s base is not limited by the physical proximity of the player to the venue.
Costs matter
While online casinos undoubtedly come up with their own set of costs, the costs associated with running a land-based casino are significantly greater.
This is especially true about the operating costs of land-based casinos, which include recurring expenses related to leasing properties, utilities, maintenance, staff, security personnel, and much more.
Furthermore, the cost of opening up a brand-new physical venue can easily run up into millions of dollars, compared to the much lower (albeit still high) cost of setting up an online casino.
Lower costs equal higher margins, and gambling companies are starting to wake up to the fact that every penny saved is a penny earned.
How regulated markets are changing the game?
Although many countries have introduced some sort of gambling-related restrictions within their jurisdictions, too many countries today remain without any gambling regulation whatsoever.
However, this is gradually changing, as more and more jurisdictions now understand that no regulation doesn’t mean no gambling, and regulating the gambling industry can lead to new revenue sources and higher player protection.
In Europe, countries like Estonia are changing their online gambling regulations to bring foreign investment into their country, while countries like Canada are experiencing a strong boom in online gambling revenue due to the favorable regulatory framework.
Governments around the world are starting to understand that in unregulated markets, players still gamble – but are forced to play in offshore casinos that are often much riskier and more predatory than a regulated casino could ever be.
For example, online gambling in India today remains mostly unregulated, which comes with several major red flags, most of which are borne by the player.
This includes no requirement for transparency, increased predatory behaviour (e.g., featuring hidden predatory rules in T&Cs, manipulating odds, and having unreasonable wagering requirements), and the lack of legal authority for players to turn to in case of need.
In contrast, safe online casinos Canada offers must all adhere to strict regulatory requirements governed by the relevant provincial authorities, depending on the region. In short, entering a new market is becoming easier than ever, with online casinos having much lower barriers to entry.
Data analysis plays a crucial role
A huge competitive advantage of online casinos is the possibility of a more granular and personalised data analysis.
While land-based casinos are forced to rely on old-school techniques such as loyalty cards, machine data, or CCTV cameras for insights into the player’s behaviour, online casinos are far superior in terms of what’s possible.
From the moment you sign up to the moment you delete your account or stop playing, virtually everything can be tracked and recorded.
Whether it’s a single click, payment, bet, withdrawal, or message to an admin, online casinos have a way to analyse every single piece of player’s information, whether it’s in-game or account-related.
With real-time analytics, integrated dashboards, endless charts, and many more useful functionalities in the companies’ backends, online casinos are much better equipped for data analysis than their land-based counterparts.
Because of higher trackability, online casinos are also much better at recognising problem gambling tendencies and can intervene when necessary.
Many companies are now using AI tools to detect problem gambling, blocking the player account and offering help to players in need.
All in all, online casinos offer potential for lower costs, easier scalability, stronger data analysis options, and an opportunity to enter new markets faster, easier, and cheaper. And while land-based casinos continue to be important, their importance is now secondary.
