EKG Study Shows Online Casinos Boost Land-Based Revenue

A study commissioned by iDEA (iDevelopment and Economic Association) and conducted by gaming consultancy Eilers and Krejcik Gaming (EKG) has shed light on the relationship between online and land-based casinos' revenue. The report examined data from various sources over 16 years, focusing on six states: Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, and West Virginia.

Analysts compared the compound quarterly growth rates (CQGR) of land-based casino revenue before and after the introduction of online casinos. Surprisingly, all states experienced a positive change in quarterly growth post-online casino launch. West Virginia, in particular, saw a significant increase of 6.0% in CQGR, marking a turnaround from previous decline.

Despite experiencing a decline in its land-based market before the introduction of online casinos in 2020, West Virginia witnessed a remarkable recovery. Even amidst the challenges of the Covid-19 pandemic, the state's land-based market regained its momentum, hinting at a successful post-pandemic recovery.

The report also highlighted differences in customer demographics between online and land-based casinos. While online casinos attract a slightly younger demographic, with 55% male users aged 40-45, land-based casinos appeal more to women aged 50-55. Additionally, the time and stake levels differ between the two platforms, reflecting varying customer preferences and experiences.

The findings of the study not only debunk fears of cannibalization but also underscore the complementary nature of online and land-based casinos in driving revenue growth. As the casino industry continues to evolve, understanding and leveraging these dynamics will be crucial for sustained success.