- Markets That Are Not Saturated
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- Is The Online Casino Market Saturated Water
- Is The Online Casino Market Saturated Point
- Is The Online Casino Market Saturated City
ATLANTIC CITY, N.J. — The casino market in the northeastern United States is saturated, yet that’s not stopping some states from approving gambling legislation and companies from building new. Casino marketing is a fiercely competitive field that has been changing dramatically with the evolution of digital technologies. With over 1,623 casinos nationwide, and 104 in Las Vegas alone, how do you stand out in a market this saturated? Marketing professionals, casino executives and other hospitality specialists need a results-focused online marketing strategy that incorporates digital. The American Casino Market. One market that is rapidly expanding is the American casino market. Online gambling is still not legal in a lot of states across America. However, the laws around gambling in America are starting to change and states are starting to make it legal, realising the money and potential of the market.
More states in the Northeast are looking to solve their budget deficits by raking in licensing fees and tax revenue from casinos. Currently there are plenty of brick and mortar gaming options in the region, with eight new venues expected to be added over the next three years. However, a new report from Moody suggests that there are already too many casinos competing for gambling dollars in the Northeast, with the report also examining how the over saturated market may affect the online gambling industry.
About the Moody Report
Entitled ‘Northeast Casinos Face Rising Tide of Competition‘, the news report from Moody examines the possible impact that the eight new casinos slated to open in the Northeast in the coming years will have on the gaming industry. The new casinos are expected to launch by 2018 at a combined cost of $5 billion, with the report warning that the casinos will only increase competition at a time when demand is already dwindling. Therefore, existing Northeast casinos will feel the impact of having an estimated 20,000 new slot machines added to the market, and as Moody’s Investors Service explains:
“Moody’s also notes that market conditions will be difficult for existing casinos such as Sugarhouse Casino and Harrah’s Philadelphia in Pennsylvania, Maryland Live casino in Maryland, Twin River casino in Rhode Island, and the Native American casinos in New York, which have already been struggling to adapt to flat revenue growth amid new entrants.”
Nevertheless, the new properties will also likely struggle to compete, as the casinos already in operation have been preparing for their opening by scaling back costs and paying off debt.
One piece of positive news anticipated by Moody’s is the increase in business likely to be experienced by slot machine and table games manufacturers. Most of the benefit, however, is likely to be enjoyed by only the biggest suppliers, including such companies as International Game Technology (IGT), Scientific Games, and Aristocrat Leisure.
How Online Gambling Can Help
There may still be some hope for Northeast casinos to remain viable in the over-crowded marketplace, though, by focusing on online gambling. Online gambling can benefit land-base casinos in the following ways:
– Providing a stream of revenue that doesn’t require any new gamblers to walk through the door. New Jersey casinos have enjoyed an increase in revenue from overall online gambling since it was legalized in the state two years ago.
– Cross-promoting casinos to online gamblers. Many casinos are finding ways to tie events at their land-based casinos with their online offerings. This can attract gamblers to the casino for special events and encourage visitors to check out their online sites and gamble from home when they’re unable to make it to the casino.
– Increasing customer retention. Online gambling can help to keep casinos fresh in customers’ minds, making them more likely to visit their brick and mortar locations when they do get the urge to gamble offline.
Current State of iGambling in the Northeast States
The Moody report points out that Atlantic City casinos will be among those hit hardest by the opening of eight additional casinos in the Northeast. Commenting on the predicted influx of competition expected over the next three years, an extract from the report states:
“The new supply will hit Atlantic City particularly hard. Increasing competition from casinos in Pennsylvania, Maryland, Delaware and New York has led to the closure of four casinos in 2014, and the new entrants in these states will likely cause the number of casinos in Atlantic City to continue to shrink.”
While online gambling may not be able to help individual casinos to grow in the new crowded Northeast marketplace, they could help to keep them sustainable and their doors open. Pennsylvania may be one of the states where online gambling will be of most benefit to casinos. Legislation is currently being considered to legalize iGaming and regulate the online gaming industry. The land-based casinos are almost unanimously in favor of legalization, as they recognize the potential benefits of expanding into online gaming. The one exception is the Sands Bethlehem, which is owned by Sheldon Adelson, one of the most outspoken opponents of online gaming.
New York is another state where competition among casinos is of concern. So far, there have been no serious discussions about legalizing and regulating online gambling there, but this could change. The final state mentioned in the report is Maryland, where there hasn’t been any consideration of online gaming.
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What Is Market Saturation?
Market saturation is a situation that arises when the volume of a product or service in a marketplace has been maximized. At the point of saturation, a company can only achieve further growth through new product improvements, by taking existing market share from competitors, or through a rise in overall consumer demand.
Understanding Market Saturation
Markets That Are Not Saturated
Market saturation can be both microeconomic or macroeconomic. From a micro perspective, market saturation is the point when a specific market is no longer providing new demand for an individual firm. This is most often the case when a company faces fierce competition or has a reduction in the market's need for its product or service.
From a macro perspective, market saturation occurs when an entire customer base has been serviced, and there are no new customer acquisition opportunities for any firm operating in the industry.
To stop this phenomenon, many companies have intentionally designed their products to 'wear down' or otherwise need replacement at some point. For example, selling light bulbs that never burned out would limit consumer demand for some of General Electric's products. The problem of market saturation has also caused many companies to change their revenue models, especially when product sales begin to slow. IBM, for example, changed its business model toward providing recurring services once it saw saturation in the large computer server market.
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Market saturation happens when a specific market no longer demands a product or service (microeconomic) or when the entire market has no new demand (macroeconomic).
Special Considerations
Is The Online Casino Market Saturated Water
Even in light of market saturation, many companies choose to remain in operation. When a company operates in a saturated market, there are a few concepts and strategies that they can use to stand out, remain solvent, and possibly even increase sales. The first is creativity. In a saturated market, a company's product or service offering has to be more innovative than that of its competitors to entice customers to buy.
Is The Online Casino Market Saturated Point
The second way to stand out is through effective pricing. Companies can approach this one of two ways. A company can either choose to become the low-cost provider of a product or service, or it can decide to operate as a premium option for the product or service. Either strategy requires competitive pricing against other companies that choose the same pricing structure; however, companies that operate in a saturated market usually end up waging price wars with each other, continuously undercutting prices to attract customers.
Using unique marketing strategies is a third way a company can stand out in a saturated market. When a market is saturated with product and service options, especially when those options are somewhat homogeneous, effective marketing is often the difference maker for a company.
Key Takeaways
Is The Online Casino Market Saturated City
- Market saturation happens when the volume for a product or service is maxed out in a given market.
- To help combat market saturation, firms create products that wear down over time and need replacing, such as light bulbs.
- Companies can deal with market saturation with creativity, effective pricing, or unique marketing strategies.