Are Online Casinos Becoming a Threat to Physical Casinos?

Casino chips on gaming table


Casinos have been a part of American history almost since the country’s inception. But while retail casinos have enjoyed a few hundred years of total domination, the rise of the Internet and online casino gaming is now threatening to upset that established paradigm.

Even worse for the retail casino industry, tons of the most popular online casinos are well-reviewed and bring a lot of value to their players, as we have seen with Japanese casino reviews on Live Japan Casino. But are online casinos really a threat to physical casinos, or is this just a temporary development? Let’s find out.

Growing Demand for Online Casinos

It’s a fact that online casinos are expanding faster than ever before. New casino apps are launching almost every month, and their user bases are also growing even as retail casinos struggle to keep their doors open.

In fact, the online gambling market overall may grow to reach a value of $158.2 billion by 2028: a staggering increase from just a few years ago. This is partly driven due to the COVID-19 pandemic, which shut down most retail casinos and has likely convinced longtime gamblers to try out online casinos for the first time.

Add to that the unique benefits that online casinos bring to the table, and it’s easy to see why so many people are adding to the industry’s increased demand.

At the time of this writing, there are over 2800 sites active and available offering activities like poker games, slot games, and more. Why exactly has this happened?

There’s conflicting research about what exactly is driving the trend toward online gambling, but there are a few major developments that are likely behind the shift:

  • Increased urbanization means that fewer people are taking the time to drive to retail casinos, which are often far from metropolitan areas
  • Increased Internet access, and the availability of mobile phones with the hardware required to play casino games, has exacerbated this effect

Unique Online Casino Benefits

In addition to the industrywide or economic trends discussed above, online casinos may also be growing into a serious threat to physical casinos because of their unique benefits.

Ease of Access/Comfort and Convenience

Who can deny the total ease-of-use and other convenience that online casinos bring to the table? With online casino sites and apps, gambling enthusiasts no longer have to drive for several hours just to get their slot or poker game fix.

Instead, they can download a top-tier casino app straight to their mobile phone or device, then enjoy high-quality games from their favorite sofa or chair. This ease of access also makes it very easy for new gamblers to jump into gaming for the first time, whereas driving to a casino would take more effort and time out of their busy lives.

Opening Bonuses

Many online casinos also draw in players with generous opening bonuses and regular promotions. Opening bonuses provide free credit or other opportunities to win big, especially since many online casinos are competing with other casino sites and so make their promotions as attractive as possible.

The opening bonuses are a unique feature that retail casinos don’t typically offer, as they usually rely on other perks, like atmosphere or local restaurants, to draw people to their gambling hubs.

Faster Access to New Games

While retail casinos also upgrade their games from time to time, online casinos have an advantage in this area as well: they can hire web developers to create new slot games with unique themes, rules, and other aspects much more quickly.

Furthermore, releasing new games, and especially slot games, is so much faster and easier. Everyone using a given online casino site can check out a new online slot title, for example, whereas a retail casino’s new game can only be used by one person at a time.

Easier to Spend Money

Ultimately, online casinos make it trivially easy to spend money and enjoy some time gambling with top-tier games compared to physical casino locations. Breaking down the barriers to spending cash is likely a big reason why online casinos are enjoying such record-high profits.

Remaining Advantages for Retail Casinos

While online casinos are certainly attractive for a variety of reasons, retail casinos retain a few major benefits that online casinos haven’t (yet) taken from them.

Brand Loyalty

Many longtime gamblers are sticking with physical casinos out of loyalty for the brand, even if online casinos might be a little more convenient or if they have new games while their favorite casino hasn’t brought out a new title in several years.

Brand loyalty is a real factor, and it can help large companies survive times of economic strife like the pandemic. But brand loyalty only goes so far, and physical casino companies know that they have to bring in a steady supply of new gamblers if they want to keep their doors open.

Casino Atmosphere

More importantly, lots of retail casinos benefit from the atmosphere they can provide to their players. Many of the best physical casinos double as luxury resorts, offering comfortable hotel experiences, spas and other amenities, high-quality restaurants and fine dining experiences, and even big concert halls and venues for other events.

As a result, going to a physical casino isn’t just stopping by the slots for a few minutes. It’s enjoying a much more diverse, well-rounded experience that online casinos cannot yet match. While some online casinos are working to counteract this – such as video streaming certain games – it’s doubtful that online casinos will ever fully replace the physical casino experience, especially for people who head to their local casino resort to spend a few days relaxing rather than just an hour at the craps tables.

Summary

In the end, only time will tell whether online casinos will truly bring the end of the broader retail casino industry. In fact, we might eventually see a hybridization model between online and retail casinos as they partner up to offer casino games to both distant and local gamblers in their markets.

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