Casino Growth in Australia Continues – Market Research

Casino in Australia

There has been substantial growth for Australian casinos over the past few years. Even though the market has become more competitive by the year, these casinos have shown that they can hold their own in the Asian-Australasian market. There has been a compound annual increase of around 2.9% to revenues over the past few years. Part of the reason for these increases is that Australians are spending more on gambling, as a percentage of their total income, than ever before. This increased spending results in a greater demand for casinos, both from domestic and foreign patrons.

Major Firms –

There should be further growth of casino revenues, with the figures at the end of 2014-2015 expected to show a 0.4% increase from 2013-2014. The two major casino operators in Australia are Echo Entertainment and Crown. Both are benefiting from the fact that non-essential spending is increasing in the entire Asian region, and specifically in Australia.

As with any elite industry, the concentration of market shares is very high. Crown, Sky City and Echo control 77% of the casinos in the country with more expected in the future. Of the three companies, Crown is taking the most steps to further boost their market share.

Further Increases Expected –

There is not expected to be any slowdown in the progress made by casinos in Australia. Their business may be challenged by a new type of competitor ever year, but economic factors are in their favor. Spending on vices such as gambling, tourist rates in Australia, and per capita income are all expected to continue rising over the next five years.

Even though a few firms control most of the casino income in Australia, they can never rest on their laurels. Competition has never been fiercer, with online casinos and foreign sites all battling for a set percentage of customers. The best way for these mega firms to grow is to target the very elite of Asian society. By starting new casino projects in Australia, they plan to build multi-billion dollar casinos that will host millionaires and billionaires from China and the rest of Asia.

By 2018-2019 there will be four new casinos in Australia (Queensland x2, Cairns and the Gold Coast. These casinos will also include five or six star hotels, luxury resorts, and shopping centers. Casino owners are aware of the current boom in their industry, and they intend to take full advantage of it.

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