O2O Hidden Markets for Gambling Industry

There is defiantly a huge demand for a constant growth of new strategy and market solutions for better corporate earnings and sustainable incomes in the industry of casino gaming and iGaming. Through our recent article “The Progression of Mobile iGaming” we’ve established the rise of mobile iGaming and what huge market potential there is to offer due to the advancement of technology.

Nonetheless, this conditional growth of technology may cause some concerns for existing land-based casinos!  But before any drastic adjustments or investments made there may be a hidden market that might suggest other potential markets that’s yet to be exploited. And today OMNI GAMING will be unfolding that hidden markets for you!

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Real Estate Value

The latest approach among gaming companies is the hidden market of real estate to increase revenues. Due to acreages of land coverage in modern casinos, that’s constructed as a multi-functional resort that divides into extensive components of land-based experiences of gaming, hotel resorts housing guests, and commercial use of properties.

Commercial Use of Properties

The commercial use for the property is the latest strategy to increase revenues for casinos. This trend was originally pioneered by Caesars Palace, and now you can witness the growth of this revenue strategy. Places such as Bellagio, Planet Hollywood, Marina Bay Sands Singapore, and even the world’s biggest casino Venetian Macao are all part of this approach; which is also known as “Casino Resorts” or shopping malls!

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During 1998 when the Bellagio opened, a portion of their property was stationed with high-end shopping boutiques. Around 2000s Planet Hollywood in Las Vegas also included large property of shopping mall that mirrored forum shops that were more affordable. There were many more casinos that followed the same trend, and begin separating their properties with hotels, shopping malls that contains several high-end retail shops like Louis Vuitton and Prada.

By separating land properties, a shared economy is created. When players are not burned out at the tables, or when they have won a humongous amount of money, they can use this extra cash to purchase goods, meals from restaurants, tickets for shows or services that are part of the resort property.

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Through “Motivations to Why People Gamble” mentions the social rewards that affect the behavioral motivations players have towards gambling. When a community is established in the same environment for a period of time, that environment will gradually form into its own social culture known as a community lifestyle. And this is defiantly where the true magic where casino resorts penetrate in!

Providing a remarkable ambiance of a relaxing, and exciting holiday mode for customers. Where potential players can experience a social community within these casino resorts or shopping malls. It defiantly increases demands for a multi-function space for entertainment!

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As we witnessed to an enormous increase in growth of the economy through real estate value from these casino resorts. There may be some truth to their business model! Others may approach in a different audience group by conveying themselves to more convention centered destinations. Turning gaming companies into a B2B operation rather than entertainment oriented.

Online to Offline Gambling

Another potential revenue may perhaps be the combination of land-based casino and iGaming! The latest topic discussed during GMIC Beijing conference, a business model which created a grossly large revenue growth in China known as the Online to Offline (O2O). The main concept of O2O is using digital traffic to guild people to shop offline. And one of the biggest reason why this concept of O2O had such a visible effect was due to local’s demand for technologies and the solution for convenience.

Gaming Experience

We can all agree there is a huge difference in the gaming experience when it comes to land-based casino and iGaming. A drastic difference in the sense of ambiance. Land-based casino creates an ambiance of a holiday and a completely different experience where customers can be served with great drinks and food within a reach, offering the pleasure of exploiting new adventurous games throughout the casino! On the other hand, in iGaming, you get to play anytime, anywhere when you have access to the internet, the freedom of entertainment pleasures is limitless!

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Before we explore deeper into the hidden markets of an O2O business model for casinos. Let’s first discuss the number of people that are connected to mobiles. China alone has 555 million mobile users, and 162 million users already use 4G and are still growing! And each of these users is most likely using a messaging app known as WeChat, during GMIC Beijing conference 60-70% of Chinese participants were exchanging contacts through WeChat’s QR code. And China’s secret convenience lifestyle was created by QR code scanners. An old stat show from October 2013, more than 113 million scans were performed in a month! And recently Alibaba invested in an Israeli startup that provides custom QR codes that increases the scan rate by 4, known as the Visualead (WSJ).

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China has become the leading use of e-commerce players. 55% of China’s internet users have paid by their mobile. This is a business trend that the entire world will eventually catch up and execute as well! So, imagine the demand for convenience and desire for experiences that a swipe of phone can create!

Hypothetically if today there was a land-based machine that could sign off and online to any games you played through iGaming in a casino, where you get to experience the ambiance and services of these luxurious resorts have to offer. Or even meal offers from the casino resort just for playing iGaming through land-based casinos? Wouldn’t this vocation be something worth remembering of? Rather than sitting home alone playing games? Or even having extra bonus rounds and reward for scanning QR codes exclusively provided by land-based casinos? Imagine the possibility of revenues with just China alone!

Conclusion

By combining the strength of land-based ambient experiences these luxurious casino resorts that have already spent billions building to a space full of entertainment and tourism or even conventions. It may just be the perfect spotlight for iGaming games! And allow players to fully enjoy their games to its fullest potential! By building a social community of hobbyist who enjoys the convenience and pleasure these gaming industries brings to their life. And who doesn’t like an exclusive offer in-between the collaboration of land-based casino and iGaming with a scan away!?

References
 Nicholas G. Colon (16 AUGUST 2018). Real estate: the hidden market in casino gaming. Managing Director of the Alea Consulting Group, Gambling Insider: https://pse.is/BDWQH
Penny Slot Machines (2007-2018). Online Slots VS Land-Based Slots: https://pse.is/BFDFM
Martin Pasquier (J, May 2015). O2O Why China leads the “Online to Offline” Revolution. Innovation is Everywhere: https://pse.is/BN7ND

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