Money and ticket counters give casinos a way to boost efficiency, which is an important strategy in the face of increased competition. Many more casinos have opened in the U.S. in the past decade, but this is particularly true in the Northeast region of the country. This area has seen more new facilities open than any other region during the same time, according to The Wall Street Journal.
In the past, Atlantic City, New Jersey was the primary gambling destination on the East Coast, but other states in the region have started to open casinos. In fact, 26 new facilities have opened since 2004, and this means there are now 24 casinos within 100 miles of Philadelphia. Although the new casinos have increased total annual gambling revenue in the mid-Atlantic region and New England, this puts individual facilities at risk of losing profits because of higher competition. Some states such as Rhode Island depend on gambling revenue for taxes.
Casinos need new tools to grapple with industry challenges
Delaware and West Virginia also need casino money to balance their state budgets, Massachusetts-based publication The Republican reported. The increased competition has made it more difficult for these states to maintain their original levels of funding. Additionally, New York state is in the process of approving licenses for four new upstate casinos, which would further contribute to oversaturation in the region.
The changes have occurred quickly. Since 2006, Pennsylvania has become the state with the second largest number of casinos after Nevada, The Wall Street Journal stated. However, even the facilities in the state have experienced heightened competition from nearby Maryland and Ohio. This could be detrimental because the racetrack casinos in Pennsylvania are a major source of municipal funding.
In addition to new facilities in New York, Massachusetts is poised to open resort-style casinos. Operators in the Northeast will need to consider new strategies to stay competitive, especially as the market reaches a point of total saturation. Money and ticket counters can help casinos raise efficiency without increasing operating costs, which is essential when individual facilities are facing a decline in revenue. Casinos in many regions need to find innovative ways to engage with their target audiences, but this requires funding. Implementing new back-office technology can help operators focus on initiatives to create a more competitive environment.
July 10, 2014