Revenue transition: State-sanctioned gambling establishments in Germany accrue €1.3 billion and effectively commence their online operations.
Germany's Land-Based Casinos Smash Records in 2023, According to DCA
In 2022, Germany's stationary casinos generated approximately 1.1 billion euros in gross gaming revenue. Fast forward to 2023, and that figure was broken yet again. The casinos reported a staggering 1.3 billion euros in revenue, as reported by the industry publication games & business.
The German Casino Association (DCA) accounted for 684.5 million euros of this revenue, with the remaining revenue coming from other state-licensed casinos outside the DCA.
Kerstin Kosanke, DCA's President, cited pride in the land-based industry's ability to thrive in the face of a growing online market:
The digital revolution has infiltrated every aspect of life, even gambling. However, the popularity of brick-and-mortar casinos across various demographics suggests that they're offering something unique - live gaming experiences in an authentic setting. Guests are loyal to the brand and the gaming culture it represents. – Kerstin Kosanke, President of DCA, Source: games & business
Kosanke maintains that casinos serve as a vital catalyst for legalized gambling, but competition remains fierce, with billions still being generated in the unregulated online market.
Saxony's Casinos Embrace the Digital Arena
To meet the increasing demand for online gaming, Saxony's state-owned casinos ventured into the digital space a year ago, launching virtual slot machines. According to a report in the FAZ, the move was successful.
Saxony's casinos are the only state-operated entity to have secured an online gaming license thus far. The positive experience has incentivized the company to expand its virtual offerings.
Frank Schwarz, the CEO of Saxony's casinos, also highlighted the intention to allocate a portion of the revenues for social causes, such as maintaining Dresden Castle.
The Illegal Online Market Poses an Ongoing Challenge
Schwarz acknowledged that the challenge from the unregulated market poses a threat to the legal offering, which is hampered by stringent regulations. Research indicates that overly restrictive laws may indirectly boost the illegal market.
A substantial portion of Germany's gambling revenue originates from the online sector. The gross gambling revenue of online providers far exceeds that of land-based operations. Additionally, estimating the extent of illegal gaming is an arduous task due to a high unreported rate.
The Casino Landscape Continues to Evolve
Later this year, Merkur Group (formerly Gauselmann) will assume control of the state-owned casinos in Lower Saxony. Plans to erect a new casino in Siegburg (NRW) have also been announced, despite initial objections from environmental activists.
The opening of Merkur's new casino in Monheim (NRW) last year may have contributed to the impressive 2023 results reported by Germany's casinos.
Remains to be seen whether the state-owned casinos will continue their growth trajectory in 2024 and whether other state-owned operators will join the online gambling market expansion.
In the light of these achievements, the latest news from Germany's gaming industry shows that another record was broken in 2023, with land-based casinos reaching an unprecedented 1.4 billion euros in revenue.
This continuous growth in the land-based casino sector, despite the digital revolution and the thriving online market, underscores the enduring appeal of traditional gaming experiences.
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