Asia Takes the Cake When It Comes to Gambling

Published Monday, July 02, 2012 -

Since early 2008, the center of the Global Casinos and Online Gambling industry has experienced huge changes where Macau in China has surpassed Las Vegas, not to mention Atlantic City as the hub of wagering activity. This monumental change towards Asia is expected to make more waves in other parts of the world’s gambling community Assisting the movement are the recent casino openings in Macau and other parts of Asia expected in the near future as two massive casino developments add to the already competitive market. Chinese Government restrictions limit domestic access to their casinos and therefore these profitable casinos are mostly reliant on international and high end tourist gaming revenue. Which is also sensitive to down markets and the EuroZone economy.

A collaboration report commissioned by the Gaming Club and IBIS has revealed that Australia is experiencing steady growth in gambling profit estimated at a rate of 3.3% in 2012. Accounting for this drive are online poker and sports betting, the latter is legal in the country and has gained more than $400 million in the last decade. Although for all the success sports betting has contributed in the growth of online gambling in Australia, the most important driving force still continues to be online poker.Gaming Club estimates that 60% of the Australia’s gaming revenue will come from poker playing in 2012.

IBISWorld analysis indicated that the barriers to enter the casino industry are high and overall, the industry has a low level of concentration. Asia is ripe with the top four players estimated to account for less than 21% of the available market share in 2009. The degree of capital intensity is generally low. However, there is a shift towards asset leasing and management rather than ownership of casinos. A move into casino management by some operators is decreasing the direct capital outlay involved in purchasing land, building, and furniture and fittings. In this respect, the barriers to entry are being lowered.

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