Sunday May 9, 2021

updated - May 9, 2021 Sunday EDT

5 Reasons Why a Casino Franchise is a Good Investment for 2019

Apr 08, 2019 03:14 PM EDT | By Staff Reporter

When choosing a franchise to invest in or purchase, the number one consideration should always be whether or not you will get a substantial return on investment (ROI). With popular forms of franchises such as restaurant chains or gas stations, your ROI is rarely certain.

There are countless examples of people who have invested north of $1 million in a McDonald's franchise only to find themselves barely breaking even. That's why in 2019, it pays to be a little more alternative when it comes to franchising.

One sector that is opening itself up more to franchising is the casino industry, with major players including Wynn Resorts, Las Vegas Sands, and Caesar's Entertainment now offering franchises. Here's why you should consider it as an investment option in 2019.

The Industry is Growing, Fast

The global gambling market is worth close to half a trillion dollars, with the gross gaming yield of casinos in the US alone amounting to around $130 billion. On top of this, growth outlooks for the years ahead are some of the most positive out of any other industry, with revenue growth predictions generally ranging from 5-10% year-on-year growth.

There is Very Broad Appeal for Casino Services

Casinos don't just attract one specific type of consumer. People of all ages and demographics constitute regular casino goers, from wealthy retirees to vacationing college students. Part of this broad appeal is related to how accessible and easy most casino games are. Take blackjack for instance; if you can count to 21 you can enjoy this classic table game, both online and in a land-based casino franchise.

Regulations are Relaxing

Now is one of the best times in US history to get into the casino business. Gambling laws are relaxing at an unprecedented rate, opening up the market to more businesspeople and consumers than ever before. Alongside the almost wholesale deregulation of sports betting, the US government has made it easier than ever before to own, operate, and license a casino.

You Get More Than Just a Casino

The money-making potential of a casino franchise goes well beyond gaming revenues. Typical casinos will also contain bars, restaurants, events venues, and boutiques, making them lifestyle destinations in their own right. In many ways, operating a casino franchise can feel like you're getting a dozen businesses for the price of one. You may also get a say over which third-party businesses operate on the premises, as well as how much you'll be able to charge in commercial rent.

You Can Do It Online

If the effort of establishing a bricks-and-mortar casino seems like too much for you, you could open an online casino franchise. Many digital casinos allow for franchising, wherein you can use their brand name and resources to launch an online gambling platform of your very own. Needless to say, online casino revenues are currently through the roof, and thanks to the relatively low start-up costs associated with online casinos, you could see some very healthy returns in the future.

Franchising is a hugely effective way to leverage brand power to make your own business a success. Consider casino franchising if you want to enter the lucrative gaming market.

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