The Impact of Casinos on Local Real Estate

The casino industry is one of the most successful industries across the globe, in which it had an estimated worth of $207 billion US dollars in 2021. This figure has only continued to grow as the world has gone back to global travel and the prevalence of online casinos continues to drastically increase. 

While casinos are currently dominating the online space, there are still many physical casinos venues across the world that have a big impact on their local area, in both positive and negative ways. Looking to move to an area where there’s a casino? There are some major factors to consider about how it could impact your local area, the property you’re buying, and your lifestyle.

Below, we’ll take an in-depth look at how casinos can impact on local real estate. 

Uplifting an area

Back in 2007, regeneration of many areas in the UK like Blackpool and Manchester was top of the agenda for the British government. At the time, the global economic crisis had not hit yet and there were plans for a number of super casinos to be built in areas that needed extra TLC. 

It was thought that these super casinos would attract tourists to the area and put dwindling towns and cities back on the map. In addition to making the local area a more desirable place for people to visit, it would bring in money for local businesses such as restaurants, hotels and other local attractions. As such, an area that is affluent and thriving becomes a more desirable place to live, meaning that it could in turn increase the price of local real estate and have a positive effect on a local economy.

Outpricing small businesses

While super casinos could make a local area more desirable and help make the local area more affluent due to an influx of business, it could also mean that rent goes up for local homes and business venues. As such, many smaller businesses with a very small turn over and profit margin could be priced out of their properties and forced to move to a less desirable area.

As such, the introduction of super casinos can possibly decrease the amount of business diversity in an area as conglomerate casino owners begin to dominate the local market. 

An investors market

On the other side of the coin, if you are a property investor then the introduction of a casino in the local area could be ideal. By purchasing property in the area, you could rent it out for an impressive profit as many people want to live in an area that is thriving with a great economy. 

As the area becomes more iconic on the map, property investors will only continue to benefit as their property gets more valuable. If we take a look at statistics for other areas across the globe, the likes of Las Vegas has a thriving property market with more than 648 thousand residents. As the 7th most popular tourist destination in the world, the market is also thriving for local AirBnB owners, hotel owners and many other businesses. 

The entertainment factor

Of course, one of the most simple benefits is that there will be lots to do in your local area and it will be a desirable place to live. A great land-based casino offers many activities, from a cocktail bar, to live entertainment, a restaurant, many different classic casino games, and even esports in some venues.

If you fancy a night in, the chances are your local casino has a slot machine online for you to play on without even having to leave the house. Online casinos can often provide a wider choices of games too as they are not restricted by physical space or staffing restrictions. Not to mention, there are no closing times either. 

The downside of local casinos 

Of course, there are also downsides to having a local casino in the area too. Often a casino can attract people that have been drinking, or even problem gamblers. This could mean there are an increased amount of neighborhood disturbances and potential late night noise from people leaving the casino late. 

These factors could possibly make local properties that are very close to the casino less desirable and reduce their value. If you are a property owner who rents out the property then you may experience difficulty renting out the property. 

Overall, while there are many benefits of having casinos in your local area, there are also some challenges to consider too. When purchasing a property near a casino, it is best to weigh up both the pros and cons and seek legal advice before signing anything concrete.