LONDON--(EON: Enhanced Online News)--Technavio research analysts forecast the global casino gaming equipment market to grow at a CAGR of more than 15% during the forecast period, according to their latest report.
“Thus, revenue contribution in the form of tax is incentivizing governments to legalize gambling market, which in turn, will drive the growth of the global casino gaming equipment market”
The study covers the present scenario and growth prospects of the global casino gaming equipment market for 2017-2010. The report also lists casino tables, slot machines, gaming chips and video poker machines as the four major product segments, of which casino tables and slot machines accounted for over 50% of the market share in 2016.
According to Ujjwal Doshi, a lead analyst at Technavio for media and entertainment services research, “The easing of government regulations related to casino markets is one of the major factors contributing to the growing demand for casino gaming equipment. Many countries, such as Japan, are aiming at legalizing casino gaming because of the growing popularity of gambling and the high revenue contribution from casinos.”
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Technavio chemicals and materials analysts highlight the following four market drivers that are contributing to the growth of the global casino gaming equipment market:
- Increasing online sales of casino gaming equipment
- Rise in demand for smart casino gaming equipment
- Easing of government regulations
- Revenue contribution in the form of tax
Increasing online sales of casino gaming equipment
The demand for high-quality casino gaming equipment has been increasing globally. The setting up of manufacture units in various countries is quite expensive for manufacturers as only a few casinos opt for high-quality casino gaming equipment. Moreover, the demand for casino gaming equipment and the type of equipment in demand varies depending on the country and the type of casino. For instance, video poker machines are popular in gambling hubs of North America, Europe, and China. Whereas in Africa and APAC countries like India, slot machines and other casino table games, such as poker, are more popular.
Therefore, manufacturers and casino players prefer supplying and purchasing technologically advanced equipment online. This provides casino players a wide range of equipment to choose from. It also allows manufacturers to earn additional revenues through exports. Furthermore, manufacturers can use customized revenue generation models such as bidding and cost-per-click to generate higher revenues. The online sales of machines such as slot machines and video poker machines increased by nearly 14% in 2015 as compared to 2014.
Rise in demand for smart casino gaming equipment
There is a shift in demand from ordinary casino gaming equipment to smart casino gaming equipment. The increasing digitalization in most entertainment segments such as gaming and movies has been a major factor attracting the younger age group (18-35). They are more attracted to innovative games, due to which casino players are integrating games like Call of Duty and Angry Birds into casinos which are gradually replacing slot machines. Furthermore, many casinos are introducing continuous shuffling machines, which increase the game speed and eliminate the need for card counters.
Easing of government regulations
Although gambling is banned and strict regulations are imposed, it is one of the major sources of revenue for countries. Therefore, the regulations for gambling markets across the world are evolving, with many countries legalizing different forms of gambling. Online gambling has made sports betting accessible to a large part of the population, except in countries where it is banned. A change in regulations, especially in countries like the US, is likely to drive the growth of the market during the forecast period. As the casino gaming equipment market is directly related to the gambling market, the easing of regulations for gambling is likely to have a positive effect on the growth of the global casino gaming equipment market during the forecast period.
Revenue contribution in the form of tax
In some countries gambling is legal, and the governments of those countries encourage gambling activities and lottery sales to earn premium tax amounts from the prize money of the players. The gambling market has a large consumer base comprising of people who regularly gamble, bet, or buy lotteries to earn easy money. The amount spent on gambling is a part of their disposable income after taxes. The disposable income of the individual becomes taxable income after the game in the form of prize money. The winner is charged tax depending on the size of winnings. The tax is used by governments for various social and developmental activities.
“Thus, revenue contribution in the form of tax is incentivizing governments to legalize gambling market, which in turn, will drive the growth of the global casino gaming equipment market,” says Ujjwal.
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