Online Casinos Continue to Put Pressure on Brick and mortar Casinos
Online Casinos offer better value to players than brick and mortar casinos. They cannot have the expense of a Las vegas or Atlantic City casino and can therefore offer better probabilities and bigger bonuses. Traditional land based casinos attract visitors with glitzy hotels and fancy restaurants. In 1976 gaming was legalized in Atlantic City. Las vegas casinos realized that they would need to do more to attract East Shore visitors than offer casino gaming. This has been the beginning of the Las vegas Mega-Resort. The Mega-Resort provides the entire family to be remembered as a vacation destination. It now costs an approximately $5 billion to buy the land and build a resort on the Las vegas rob.
In 1986, Foxwoods opened as a bingo hallway on Indian land. Foxwoods added casino table games in 1992 and slot machines in 1993. Atlantic City was now in the same position as Las vegas. They needed to offer more than just gaming. Atlantic City handled the problem the same SLOTXO way that Las vegas did; they threw money at it. Foxwoods location attracted millions of visitors and they continued to grow throughout the 1990’s and the early 2000’s until a downturn in the economy forced states to weaken laws regarding casino gaming. Today Foxwoods is the largest casino in the world and their business is being ripped off by smaller casinos. They have opened the MGM at Foxwoods in order to bring in top line entertainment. This again costs money.
The next step in this cycle is online gaming. Online Casinos are more convenient than any local casino, so no one is going to open up closer to the gambler. When an online casino is losing business they also throw money at the problem. Online Casinos do this by offering bonuses to the player, not with white tigers in the entrance hall.
Online Casinos are be depleted of small offices with a limited number of employees. These offices are in small countries with legalized gaming and limited taxes. The casinos pay licensing fees for the software that they use. You would not be able to tell an online casino from a telemarketing office just by looking at it.
The lower expense allows internet casinos to offer “Better than Vegas” probabilities and bonuses on deposits. How often does a land based casino match your first deposit? The competition for new cyber players is fierce and the bonuses continue to increase. The problem is that online gaming is not exactly legal in the united states. Why not? Because it is not taxed! This is where the problems start.
The government has no interest in the individual gambler. They are attempting to choke the money supply. The theory is that once there is no money to be of offshore casinos they will go away. Then either players will go back to traditionally taxed land based casinos or the hectic laws changes and the casinos that are paying tax will be allowed to open Online Casinos. Las vegas has a new law allowing e-gambling in resort rooms while several states making the effort to tax internet sales. Will this create the new “Atlantic City” for current Online Casinos? Will they figure out a new way of throwing money at the problem? The answer is yes and the cycle continues.