The Australian casino industry is currently in a state of flux. In the last half-decade, a slew of related and unrelated changes have emerged. Both industrial dynamism and other external factors have influenced the changes.
During its peak, the two-year-long COVID-19 scourge had a particularly large impact. Sports betting, traditional lotteries, slot machines, and land-based casinos down under were all severely affected by the pandemic. COVID-19 containment measures implemented in 2020 and 2021 had a negative impact on the majority of them, but had a positive impact on others. However, the overall effect was primarily negative, as the measures resulted in the closure of some businesses and the suspension of most gaming activities.
Adaptations made by the Australian Casino Industry
Above all, the casino industry’s sharp revenue decline since the COVID-19 pandemic started could not go unnoticed. Down under, the uniform law restricting mass interaction resulted in the closure of most congregational facilities. Making land-based casinos one of the pandemic’s biggest casualties. It was also bad for gambling categories that generate revenue from sporting events, as a result of restrictions imposed to limit human interaction in indoor facilities. Despite the odds, the closure of gaming establishments was not entirely negative. It hastened the transition from land-based to online casinos, which was already underway.
Travel restrictions also had a negative impact on the gambling industry. They barred casino tourists, halting the flow of revenue from international visitors. Furthermore, the fear of infection caused local casino tourists to reduce their visits to land-based facilities, further reducing the income generated by gambling enthusiasts. The decrease in revenue earned through these and other channels had a knock-on effect on other sectors of the casino industry. However, there is a glimmer of hope amid the industry’s ongoing reinvention.
The Renaissance of Australia’s Casino Industry Following the Pandemic
The development of less drastic methods of containing the spread of the novel coronavirus gave room for proactive casino industry players to resurrect the sector. Crown Resorts is one of the key players committed to the revitalization of the casino industry. The gambling company recently announced that it will go through a takeover buyout after its board members unanimously agreed to sell it for AU$8.9 billion.
Crown Resorts is one of the country’s largest gambling companies. Crown Perth and Crown Melbourne are the names of two casinos owned by the company. The company was previously controlled by billionaire James Packer. However, if Blackstone, a private American firm, completes its purchase of the Australian company, his relationship with it will come to an end.
In his latest casino review article, Ryan White explained that the takeover will benefit Crown Resorts’ shareholders massively. Stakeholders will benefit greatly from the all-cash buyout, which will raise the price of each share to AU$13.10 per share, up from AU$11.85 per share in 2021.
Crown Resorts is a symbol of tenacity and excellence in the Australian casino industry. The company has recently faced investigations and sanctions, but it remains steadfast. The company was recently placed under government scrutiny on allegations of money laundering in its newly opened Crown Sydney skyscraper. However, Blackstone intends to sustain excellent collaboration with the government in order to ease scaling and improve Australia’s casino industry.
Aristocrat, another major player in Australia’s casino industry, has also been making strides toward expansion. The company has been investigating the possibility of acquiring Playtech, a successful internationally acclaimed gaming software provider. Despite recent failure in their takeover bid, Aristocrat has demonstrated tenacity in gaining Playtech’s attention and consideration. If the takeover occurs in the future, the two companies will merge in order to have a greater impact on the industry. Players will have a better gaming experience as a result of the addition of new games and the enhancement of game features. Acquiring the online gambling site will also result in an increase in revenue earned.
The Expected Changes in Australia’s Casino Industry
The COVID-19 pandemic’s decreasing impact, combined with the leading firms’ efforts to make an impact, is already improving Australia’s casino industry. Already, there has been a significant increase in the industry’s revenue as online casino operations complement land based casinos.
Another expected trend is an increase in online gaming demand in Australia. Due to the constantly improving player experience and multiple other benefits, gamblers are likely to continue favoring online casinos over land-based establishments. However, this does not mean that land-based casinos are no longer viable. Instead, land-based casinos are expected to resurrect as the number and magnitude of negative effects of the COVID-19 pandemic decreases. As a result, the future of Australia’s casino industry is expected to outperform expectations in the near future.