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The Impact of Online Gambling on Traditional Casinos

  • PRG

The rise of online gambling has significantly impacted traditional brick-and-mortar casinos, altering the landscape of the gambling industry. Online casinos offer unparalleled convenience. Imagine someone in New Zealand, being able to choose from a list of NZ games and attractive bonuses, without having to leave their house.

Online gambling has drawn away many players. This blog post analyzes how the growth of online gambling is affecting traditional casinos and explores the strategies they are employing to stay competitive.

The Growth of Online Gambling

Online gambling has experienced exponential growth over the past decade, driven by technological advancements and increased internet accessibility. The convenience of gambling from home or on the go has attracted a broad demographic of players. In addition, the variety of games, including live dealer games that replicate the casino experience, has made online gambling a popular choice.

Online Gambling Growth Statistics

YearGlobal Online Gambling Market Value (in billion USD)

Impact on Traditional Casinos

The growth of online gambling has presented several challenges for traditional brick-and-mortar casinos. Here are some key areas where traditional casinos are feeling the impact:

 Traditional CasinosOnline Casinos
Foot TrafficDecreasingIncreasing
Revenue SourceGambling, hospitality, entertainmentGambling only
Audience DemographicOlder, established playersYounger, tech-savvy players
ConvenienceRequires physical presenceAccessible from anywhere

Reduced Foot Traffic

With the convenience of online gambling, fewer players are visiting physical casinos. This decline in foot traffic has resulted in decreased revenue for many traditional casinos.

Revenue Shifts

While traditional casinos generate revenue from a combination of gambling, hospitality, and entertainment, online casinos rely solely on gambling revenue. The shift in player preference towards online gambling has led to a noticeable dip in revenue from gambling activities in physical casinos.

Competition for Younger Audiences

Online gambling platforms are particularly appealing to younger audiences who prefer digital experiences over traditional ones. This demographic shift poses a challenge for traditional casinos that rely on attracting younger players to sustain future growth.

Strategies for Traditional Casinos to Compete

Despite the challenges, traditional casinos are not standing still. They are adopting various strategies to compete with online gambling and attract players back to their establishments:

  • Enhanced Customer Experience: Offering superior service, luxurious amenities, and unique entertainment options.
  • Integration of Technology: Providing mobile apps and seamless gambling experiences.
  • Expanding Online Presence: Launching online gambling platforms to cater to both online and offline audiences.
  • Loyalty Programs: Implementing comprehensive loyalty programs that reward players for both online and in-person activities.
  • Innovative Game Offerings: Introducing new and innovative games that blend the excitement of physical gambling with the convenience of digital play.

Enhanced Customer Experience

Traditional casinos are focusing on enhancing the customer experience by offering superior service, luxurious amenities, and unique entertainment options. This includes high-end dining, live shows, and exclusive events that cannot be replicated online.

Integration of Technology

Many traditional casinos are integrating technology to provide a seamless gambling experience. This includes offering mobile apps that allow players to check game schedules, book rooms, and participate in online betting while on-site.

Expanding Online Presence

Recognizing the importance of an online presence, some traditional casinos are launching their own online gambling platforms. This hybrid approach allows them to retain their loyal customer base while attracting new players who prefer online gambling.

Loyalty Programs

To retain and attract players, traditional casinos are implementing comprehensive loyalty programs. These programs reward players for their activities both online and offline, offering points, discounts, and exclusive benefits that enhance the overall experience.

Innovative Game Offerings

Traditional casinos are also introducing new and innovative games that blend the excitement of physical gambling with the convenience of digital play. These hybrid games are designed to appeal to both traditional and online players, providing a unique gaming experience.


The growth of online gambling has undoubtedly impacted traditional brick-and-mortar casinos, challenging them to adapt and evolve. While online gambling continues to grow, the unique experiences offered by traditional casinos ensure that they remain a vital part of the industry.

As the gambling industry continues to evolve, the interplay between online and traditional casinos will shape the future of gambling, providing players with a diverse range of options and experiences.


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