According to some gaming industry experts, the gaming industry is now saturated. They suggest that most areas of the country have reached their saturation point. The one noted exception is Texas. What they are saying, in simple terms, is that one would be hard pressed to find a location within the US where a player could not drive for a few hours (or less) and reach a gaming destination. This was suggested by a panel of executives all involved in the gaming industry.
According to Penn National Gaming President Tim Wilmott, “New England is saturated. The market is crowded in Ohio. It’s a little underserved in Florida.”
For those who may be wondering what all this means. According to some on the panel, it means that new casinos will not be built as quickly as they have in the past. Growth will come through other avenues such as mergers and acquisitions. There may also be some growth in the online gaming world once the issues it has are resolved.
The issue of saturation is not exclusive to the US. Many international markets are now becoming very crowded. Of those that still have some opportunities, Southeast Asia seems to be the best bet. Two major markets, Japan and South Korea, both are considering bringing in casinos into their countries. On a lesser scale, Mexico and South America may have some room for new growth as well. Europe, the panel suggests, is already as established as it is likely to be for some time to come.
The panel also suggested that with so little room left for brick and mortar outlets, gaming companies may turn to the online world for new opportunities. This may not happen soon as the online world has its own problems that need to be resolved before any large ventures can take place there.
Of the many problems facing online gaming is the issue of what the federal government is going to do. Many are still waiting for lawmakers to get around to forming a national gaming regulatory plan. Lawmakers do not seem to be any hurry to get this work done. Because national leaders are dragging this out, the panel suggest the next best bet is to work through states, one by one.
Of course, if online gambling is approved, what effect is that going to have on traditional casinos that rely on customers walking into the establishment? The panel agreed that no one really knows the answer to that issue just yet. Not everyone is pessimistic about online gaming biting too deep into brick and mortar casino profits. The problem, some suggest, is to use online venues to offer special incentives for visiting a brick and mortar establishment.
All in all, however, the panel says that consolidations and mergers will most likely be the wave of the future when it comes to gaming growth. For its part, Pinnacle is now finishing up a nearly $3 billion acquisition of Ameristar Casinos. And other companies are also into deals as well that involve mergers.