Spectrum Gaming Group Reveals Top 10 Trends for 2020
HORSHAM, Pa., Oct. 11, 2019 /PRNewswire/ -- Spectrum Gaming Group, an independent research and professional services firm serving public- and private-sector clients worldwide, has developed its list of Top Trends that the global gaming industry needs to monitor in 2020.
For 16 years, Spectrum professionals have accurately predicted critical trends, ranging from its prediction 15 years ago that the gaming industry would move from rejection to acceptance to embrace of online gaming to its 2019 prediction that Asia's online gaming industry - including the streaming of casino games to China from the Philippines and Cambodia - will face scrutiny from China and from international regulators.
The 2020 list has been developed in conjunction with experts from the Spectrum Group of Companies, including:
-- Spectrum Gaming Sports Group
-- Spectrum Asia
-- Spectrum Gaming Capital
-- Spectrum Esports Advisors
Spectrum tracks these and other trends on a regular basis, and we note that many of the trends we cite and monitor are multi-year trends. To view previous years' lists, visit https://spectrumgaming.com/gaming-trends/
The top 10 trends for 2020 (in order of prominence) are:
1. In Japan, 2020 will be the "Year of the Prefecture" in that prefectures
will be fully involved in evaluating whether or not they will compete for
one of three authorized integrated resorts (IRs). Prefectures will
establish working groups and advisory councils to assist in this process
and by the end of next year one or more prefectures will have selected
their IR operator partner. Meanwhile, the National Government will name
the Commissioners to the Casino Regulatory Commission and the regulatory
agency will become operative by issuing a series of regulatory
guidelines.
2. The internationalization of gaming brands will continue, with Hard Rock
International, Melco Resorts & Entertainment, and MGM Resorts
International leading the pack. More jurisdictions in Europe, Africa,
Latin America and elsewhere will seek out such brands as they continue to
look to the development of IRs as economic generators.
3. While igaming has been active for more than five years in the United
States, more states will expand into this area in 2020. Digital sports
betting will also continue its post-PASPA expansion. Those simultaneous
trends could lead to more conflicts between lotteries and casino
operators, as both industries look to igaming and sports betting as the
means to attract younger demographics. Related to that, the expansion of
sports betting into non-traditional outlets such as stadiums and sports
bars will fuel the use of self-service betting terminals (SSBTs), leading
to the potential installation of thousands of SSBTs in multiple states.
4. Electronic gaming devices characterized as "skill-based" games that are
not regulated will become more pervasive throughout the United States,
garnering support from legislators seeking additional revenue as well as
from retailers attracted by the prospect of additional revenue and foot
traffic. This trend is also generating significant pushback from
regulated offerings, particularly lottery games, based on concerns that
such games cannibalize other forms of gaming.
5. As mergers and acquisitions among gaming companies continue, more states
will find themselves in a position in which their licensees operate
facilities in nearby states. This will put pressure on states to develop
more investment-friendly regulatory and tax systems to keep capital, jobs
and revenue from flowing to more appealing jurisdictions.
6. The Asia-Pacific Group, the organization affiliated with the Financial
Action Task Force in Paris overseeing anti-money-laundering issues
worldwide, will continue to push countries in Southeast Asia to increase
their regulation of gaming especially in the areas of Licensing
(determining beneficial ownership of casinos and online casinos) and
anti-money-laundering.
7. Crypto-based betting and gaming will continue to gain momentum. Many
countries are seeking to regulate this activity, thus adding legitimacy
and stability to what had been a highly fluctuating, volatile currency
market. Similarly, the gaming industry's use of artificial intelligence
and virtual reality technologies will expand, with a focus on enhancing
the customer experience.
8. Handle from betting on team-based leagues and players in competitive
esports gaming will grow in international regulated markets. In the US
market, esports betting will remain minimal as the domestic gaming
industry continues to focus on traditional sports betting, and will not
devote significant resources to esports. However, regional gaming
operators will increasingly view esports as an amenity, fueled by the
increasing frequency of esports-related events in gaming hubs such as Las
Vegas and Atlantic City.
9. In Europe, gambling advertising will come under increasing pressure and
scrutiny in the face of regulatory and pubic concerns that some messages
do not sufficiently promote responsible gaming policies and practices, as
required by law. At the same time, regulators throughout Europe and
especially in the UK have signalled an increasing willingness to levy
more fines, with greater penalties, against their licensees in a
broad-based effort to ensure full compliance.
10. Separating real estate from operations with real estate investment trust
(REIT) ownership will become a more commonplace activity. At least one
more REIT will enter the gaming field to provide more competition to
leaders GLPI, MGP and VICI. Traditional, non-gaming real estate funds
such as Blackstone will continue to buy well located but underperforming
properties.
Visit https://www.spectrumgaming.com/ for more information about Spectrum, or email solutions@spectrumgaming.com
About Spectrum: Spectrum Gaming Group is a non-partisan consultancy that specializes in the economics, regulation and policy of legalized gambling worldwide. We have provided independent research and professional services to public- and private-sector clients since 1993. We bring wide industry perspective to every engagement, having worked in 40 US states and territories and in 48 countries on six continents. Spectrum also serves as the Executive Director of the National Council of Legislators from Gaming States (NCLGS).
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SOURCE Spectrum Gaming Group
