Washington Gambling Industry Set for Growth
New study shows that the gambling industry of Washington State set to grow through 2020.
Many states around the US are considering getting involved in the gambling industry. While some states already offer gaming, many are just now thinking about setting up regulation to bring revenues into their state. To learn more about the gambling industry, studies can be conducted to determine if a state will benefit from such gaming as daily fantasy sports, casinos, poker, etc. Studies are also conducted to determine if a state should expand their gaming options. The most recent study to be presented comes from Washington State, an area that is reportedly set to continue to see growth in the gambling industry through the year 2020.
Studying the Washington Gambling Industry
The Washington State Gambling Commission was presented a study by the Spectrum Gaming Group to see how the gaming industry will fair over the next few years as well as the potential impact if online gambling were to be legalized. The group found that revenues for the state will increase by as much as 37% by the year 2020 to an amount of $3.5 billion.
The growth of the gambling industry will be due mainly in part by the Class III Indian casinos in the state. Significant growth was reported from 2015 and into this year, continuing to steadily grow in 2017 to 2020. Total gaming has been estimated to be at just over $3,030.2 for 2017, up to $3,566.6 by 2020.
There are several factors that have been attributed to the growth for the gaming industry in Washington State. The population is set to grow by a margin of 5.3% within the next five years. A larger percentage of the population has been projected to be located within an hour drive of a Class III casino. New technologies will also be used to bring in the millennial group which will drive revenues.
However, the study found that the biggest factor will be the access to gaming as two new casino hotel are opening next year. This will include The Point Casino as well as the Legends Casino. The total gaming positions by next year will increase by over 3,500.
Looking at Online Gambling
During the study, the online gambling industry was reviewed. The report was used to determine how the state would do in regards to online gaming such as casino and poker options. It was found that both gaming sections could create significant revenues. In the report, it stated that similar demographic factors in Washington State as compared to New Jersey, including household income and population over 21 years of age, should be considered. Because of this, a reasonable tax rate, at 15% or less, with slot gaming, table games and poker, it is estimated that the GGR for online gaming would be $100 million.
Despite the gambling estimates for online offerings, the estimates are just a guess as to how much the industry would bring in. Other states that actually offer gambling like New Jersey and Delaware had such estimates and were far below what was believed to be earned once the money started rolling in.
The report also dismissed that online gambling would cannibalize land based gaming. Many times, states will see opposition to online gaming by casino operators due to fear that their earnings will be cut short. For what we have seen with the three states that currently offer online gaming, the land based venues do just fine while other groups of individuals enjoy the online gaming options.
It will now be interesting to see if Washington State decides to go with online gaming or expand on what they are already offering residents and visitors to the state.