Study on electrocardiograms shows that online casinos boost earnings at brick-and-mortar establishments.

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Consultancy firm Eilers and Krejcik Gaming (EKG) wrote the study. In an effort to determine if internet gambling is eating into the profits of brick-and-mortar casinos, the study combed through 16 years' worth of data from casinos, regulators, and state governments.

To find out how land-based gross gaming revenue (GGR) would be affected by the advent of online casinos, EKG examined this scenario in relation to six states. All of these states: DE, CT, MI, NJ, PA, and WV were included.

The advisory firm analysed the pre- and post-introduction of online casinos by comparing their compound quarterly growth rates (CQGR). The report found that following the implementation of internet casinos, quarterly growth improved in every state.

After the introduction of the internet casino, the land-based sector in West Virginia saw the most favourable shift in CQGR, at 6.0%. After using an online casino, the CQGR went from -3.0% to 3.02%.

Online gambling saves West Virginia
Before the introduction of online casinos in July 2020, West Virginia's land-based market had been falling consistently since 2012, when it peaked. The birth of the internet casino happened during the early months of the COVID-19 pandemic, but the land-based sector quickly recovered to its pre-pandemic levels of prosperity.

According to the research, land-based casinos in West Virginia may have their best year ever in 2023.

According to the data, the land-based market in Connecticut was falling annually prior to the establishment of the online casino. After the debut of its online casino in 2021, its GGR increased by 0.34 percent. Pennsylvania saw the slightest increase; the Keystone State had been expanding at a reasonable clip prior to the advent of online casinos. After the launch, however, land-based GGR increased by 0.14%.

The land-based markets in Delaware, New Jersey, and Michigan saw increases of 1.94%, 1.28%, and 4.89%, correspondingly, in GGR.

In its research, EKG surveyed operators of both brick-and-mortar and virtual casinos. "Participants have unanimously responded that cannibalisation has not been occurring," it said.

While 80% of respondents claimed that land-based revenue had "stayed roughly the same," 20% said that it had "moderately increased" due to the influence of online casinos.

No one said "I do not think cannibalisation fears are valid" when asked how they would characterise the effect of internet casinos on land-based casinos' bottom lines.

Different kinds of clientele attracted to brick-and-mortar and virtual casinos could be better understood with the help of EKG. The investor presentation dated June 2020 of Golden Nugget Online Gaming is where this information was retrieved from.

There are more men than women using online casinos (55% vs. 45%). Online casino players typically fall between the ages of 40 and 45. In contrast, 51% of gamers in brick-and-mortar casinos are female. Also, the age range is a little bit older, falling somewhere between fifty and fifty-five.

Furthermore, the survey highlighted that playing at an online casino usually requires less time than playing at a land-based casino. Stakes are also thought to be higher in online games than in land-based ones.

A different type of consumer is attracted to land-based and online casinos due to the fact that the two products offer essentially distinct experiences, according to the survey. "A visit to a land-based casino is more likely to be measured in hours, whereas an online casino visit is usually measured in minutes."