Insight
2021: STRUCTURAL CHANGE Third Bridge
Harry Barnick, Senior Analyst, Tird Bridge
Harry Barnick is Senior Analyst at Third Bridge group, a global primary research firm, where he specialises in covering the retail fashion, luxury brands and leisure sector industries including gambling and gaming.
2021 - A year of structural change for global gambling
At the start of the year it's customary to make plans and predictions for the months ahead. But those thoughts have been unusually muted in 2021, as our lives remain foggy and uncertain.
US Casinos have long been magnetic places and in some cases, part of an international Mecca for gaming enthusiasts. But 2020 has been brutal for places like the Las Vegas strip. The risk of infection, lockdowns, and international travel bans have seen venues opening well below capacity, closing their doors intermittently, and even permanently. Highlighting this point, the US Bureau of Labor Statistics says the Las Vegas metro area has the highest unemployment rate of America’s largest 51 cities. This is one of several reasons big US land-based casinos are looking for diversification and alternate ways to leverage customer data.
P34 NEWSWIRE / INTERACTIVE / MARKET DATA
For many the economy looks troubled, the stickiness of habits developed during the pandemic are being questioned, and frankly many of us are just taking life day by day. But for me, now is exactly the right time to do your best futurology. For in 2021 all of the necessary conditions are present to reshape a number of industries beyond what we have already witnessed in 2020. I'd put gambling near the top of that list.
I believe we'll see a gold rush around US gambling, waves of international M&A, and increased regulatory activity in the UK online gambling market.
THE US: GOLDRUSH ACCELERATED Te US gambling market is young and full of promise,
with regulation opening up states for land-based and online sports betting. Te customer base of brick and mortar casinos points to latent demand and mobile sports betting and iGaming are taking off. Tis is spurring global interest and billion-dollar transactions.
US Casinos have long been magnetic places and in some cases, part of an international Mecca for gaming enthusiasts. But 2020 has been brutal for places like the Las Vegas strip. Te risk of infection, lockdowns, and international travel bans have seen venues
opening well below capacity, closing their doors intermittently, and even permanently. Highlighting this point, the US Bureau of Labor Statistics says the Las Vegas metro area has the highest unemployment rate of America’s largest 51 cities. Tis is one of several reasons big US land-based casinos are looking for diversification and alternate ways to leverage customer data.
At the same time the regulatory environment is facilitating a shift into sports betting, with Covid aiding these conversations by encouraging regulators to discuss the opportunity for online sports betting. Te lockdown has ravaged state budgets so lawmakers are looking for innovative ways to create jobs and refill their coffers. Te risk-reward balance of gambling is an obvious place to look.
Each state operates a limited system of licenses or skins. Tese span casinos, racetracks, and mobile betting. With each licence opportunity heavily over- subscribed, competition is fierce. Experts indicate that market share is a key consideration for States when skins are allocated. Consequently, land-based casinos and sports betting companies alike are vying for a top spot. So far, FanDuel and Draftkings are leading the way.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94
