The gaming industry experienced a successful 2023, and 2024 promises to be another exciting year of innovations and growth. With an emphasis on solutions that streamline processes and safety and new expansion of the industry, here are three trends that are sure to shape the gaming industry in 2024.
Leading Cashless Payments
There is a growing recognition among more casinos and operators of the convenience and efficiency that cashless payments bring to the gaming experience. This trend is gaining momentum, streamlining payments for patrons and enhancing the overall gaming experience. Pavilion Payments remains at the forefront of cashless innovations with solutions such as VIP Mobility™.
A part of the VIP Preferred® vertically-integrated payments ecosystem, VIP Mobility empowers casinos to reduce operating costs and provides a true, consumer-centric experience on the gaming floor. It offers a seamless player journey, from funding through cash-out. VIP Mobility effectively utilizes existing infrastructure, making it the only omnichannel funding solution in the market. Vertically-integrated solutions like VIP Mobility offer a cost-effective solution, making the transition to cashless gaming effortless.
VIP Preferred members can link their existing accounts to VIP Mobility to enjoy gaming at casinos across the country or switch to online experiences without the inconvenience of re-registering their accounts. With cashless payments made simple, there is an expected increase in adoption from both operators and patrons.
Expanding Operations
As revealed in a recent release from the American Gaming Association (AGA), more states are becoming operational, with a few holdouts in about 12 states. Currently, there are 37 states, including DC, that are live and legally offered through retail and/or online sportsbooks.
Combined in-person and online sports betting also recorded a strong quarter, with revenue up 22.8% year-over-year, reaching an impressive $2.15 billion. This growth was mostly driven by Maryland (online), Massachusetts, Nebraska and Ohio – states that were not operational a year ago. iGaming is the fastest growing but online gaming is still only available in 27 states including D.C. The expansion of state operations not only provides career opportunities but also significantly contributes to local economies through increased tax revenue.
There are several encouraging benefits of states becoming operational, whether it's online or in person. State and local governments in gaming states saw an influx of direct gaming taxes in the third quarter. Commercial gaming operators paid an estimated $3.43 billion in taxes tied directly to gaming revenue, an increase of 4.7 percent year-over-year. This positive financial trend is proving beneficial and gives an inside look into the thriving gaming industry.
Thriving iGaming and Online Sports Betting
While traditional slot machines and table games continue to hold their ground, iGaming has emerged as the fastest-growing segment in the industry. Combined traditional slot machine and table game revenue reached $12.49 billion for the quarter, up 1.8 percent year-over-year while iGaming grossed $1.52 billion, up 26 percent year-over-year. This surge in revenue is a testament to the growing engagement and popularity of online gaming platforms.
In the AGA’s most recent Commercial Gaming Tracker, data reveals that sports betting and iGaming set a record in October for the industry’s 32nd consecutive month of year-over-year growth. By October, sports betting and iGaming were outpacing 2022’s record pace by 9.6 percent. It’s expected to see this trend hold strong in 2024.
As the gaming industry experiences innovations and growth throughout 2024, Pavilion Payments strives to be at the forefront of innovation to ensure all patrons can experience a truly smooth gaming experience. Click here to learn how Pavilion Payments is enabling gaming and entertainment leaders to create amazing consumer experiences across their physical and digital properties.