A glance at the figures reveals that more and more arcades are having to close. This is due, among other things, to stricter laws and the ever-growing competition on the Internet. The latter are increasingly taking over the market.
It is only a matter of time before the future of gambling takes place entirely online. This is also shown by the current development in the online sector.
In addition to the well-known providers, so-called Bitcoin Casinos are also increasingly opening. These are platforms where, in line with current trends, payments can even be made with cryptocurrency.
Berlin: High Decline In Physical Slot Machines
In Berlin alone, more than 80 arcades closed in 2019. In addition, more than 1700 slot machines in bars, snack bars and cafes are no longer in operation.
As a pioneer, the city adopted stricter laws at the time, and the closures were the logical consequence of the Senate’s crackdown.
It is simply no longer economical to continue to operate under the tough conditions. The situation looks similar throughout Germany.
But this development is not unique to the German capital. Due to the advancing, worldwide digitalisation, the market for physical arcades continues to decline.
In the meantime, a large part of the world’s population has access to the Internet. An international casino offering is significantly more lucrative for providers than local arcades.
Restrictions Show Conditional Success
Berlin also saw a further decline in physical arcades in 2020. At that point, however, the global pandemic was more to blame. But a year later, the next success: in 2021, only 120 of the former almost 600 arcades will be allowed to open.
One sticking point remains. Although the arcades themselves have become fewer, the machines in bars and the like remain. The measures taken by the city of Berlin are having an effect, but the market for physical gambling has not been completely abandoned.
Online Casinos Lack Advertising Space
While the arcades had the advantage of being able to draw attention to themselves, online casinos lacked this opportunity for a long time. Due to their high density, the arcades were always present in everyday life, with the colourful lights of the facades visible on virtually every corner.
But for a long time, the providers on the Internet only had the opportunity to advertise on just that. Television advertising or ads on advertising pillars, in newspapers and the like were unthinkable.
However, advertisements for online casinos are spreading. They are more targeted and increasingly reaching new media. Even on international television more and more advertising for online casinos can be seen.
Deposit Bonus A Clear Advantage On The Internet
Those who already know some online casinos know that there is almost always a bonus on the deposit on the Internet. In physical arcades, however, this is unimaginable. No one doubles the credit that is thrown into a slot machine.
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Online, on the other hand, the number of offers that promise a bonus is very high. For many users, these very offers were the reason to switch to an online casino.
Online casinos often organise regular promotions where bonuses can be obtained. This form of customer loyalty does not exist in this form at arcades. So those who want to benefit from the offers will switch to online casinos.
Shorter Distances, No Complications
If you are a customer in an online casino, you are not bound to opening hours. The internet is always available, and the gaming experience is guaranteed at any time.
It doesn’t matter what the weather is like outside, or how far away the next arcade is. Online casinos are always available and therefore have a clear advantage over arcades.
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In general, independent gambling in an online casino is much more relaxing than always having to go to the casino. Society is always looking for ways to make life easier. Online casinos create a certain convenience that will prevail in the long run.
Online Casinos Significantly More Lucrative For Providers
Those who decide to open an arcade rarely reach a large target group. Often, the potential customers are only the residents of their own city.
When opening an online casino, however, everyone is a potential customer. Even users who live hundreds of kilometres away can be reached with online casinos. There are therefore no limits to the target group.
Moreover, once you have made a name for yourself, you can do without advertising in the future. Large providers are established and have a large amount of existing customers.
Digitisation Continues To Advance
Digitalisation is also screaming ahead in industries other than gaming. eSports are becoming increasingly popular, business trips are being replaced by meetings on Zoom. There are many reasons why physical gaming halls will not be part of the future.
For one, they are economically unable to exist. Several employees are employed per hall to supervise a small number of machines. Online casinos have the ability to serve many more customers at the same time. And all this without store rents, costs for employees, etc.
Often, they simply acquire the licenses for already programmed games and offer them on their own site. As a result, a provider of online casinos must employ far fewer employees per customer than an owner of an arcade.