More gamblers going to casinos in Bavaria
Running a casino is no longer a guarantee of high turnover. Crises, bans and, last but not least, online gambling can take their toll on traditional establishments. This was also the case in Bavaria, where the acceptance of online gambling was severely hampered for around 15 years. However, this difficult period now seems to be over.
Bavaria has nine state-run casinos, some of which opened in the 1950s and have a long tradition. However, even the most established and venerable properties are struggling to survive in the market if punters stay away. This has been the case in the Free State since around 2007. Since then, several casinos have suffered repeated losses. In some years, the acceptance of gambling has declined so much that the casino crisis has even been discussed in the state parliament.
As Stern recently reported, Claus Niederalt, president of the state lottery and casino administration, has now declared the problematic period to be over. In 2023, gross gaming revenues are expected to reach a level not seen since 2007. The years of losses are over. He bases his positive forecast mainly on the very good revenues already achieved in 2022.
The 15-year drought seems to be over
In 2022, the gross gaming revenue of the Bavarian casinos will again exceed the €100 million mark. Based on the figures for the first half of 2023, Claus Niederalt expects it to be considerably more this year. By June, gamblers had already left €60 million in the local casinos. If a similar amount is achieved in the second half of the year, this would again significantly exceed the 2022 turnover. Niederalt is confident that the casinos will be able to continue this trend in the coming months.
This would probably put an end to the long-running casino crisis in Bavaria (for the time being). The difficult phase, which affected most of the houses in the Free State, began 15 years ago. Losses were recorded at individual casinos almost every year. In fact, there was only one casino that was reliably in the black. This was the largest and one of the oldest casinos in Bavaria, in Bad Wiessee on Lake Tegernsee.
The casinos in Bavaria with opening dates at a glance
- Spielbank Lindau in Bavarian Swabia (1950)
- Spielbank Garmisch-Partenkirchen in Upper Bavaria (1955)
- Spielbank Bad Kissingen in Lower Franconia (1955)
- Casino Bad Reichenhall in Upper Bavaria (1955)
- Casino Bad Wiessee in Upper Bavaria (1957)
- Casino Bad Füssing in Lower Bavaria (1999)
- Spielbank Bad Kötzting in the Upper Palatinate (2000)
- Casino Feuchtwangen in Middle Franconia (2000)
- Spielbank Bad Steben in Upper Franconia (2001)
Why did the problems occur?
The revenue crisis, or lack of players, had several causes. It all started when the smoking ban was introduced in Bavarian casinos in 2007. Initially there were exemptions, but it soon became clear that this would have a significant negative impact on the casinos. In 2010, the transitional period came to an end - following a referendum, cigarettes, cigars and pipes could no longer be smoked in any casino.
Business was more or less stable for a while until the Corona pandemic hit Germany. Initially, the casinos had to close for months. When business resumed, strict conditions had to be met. Many loyal customers had turned to online gambling during this time and did not return. In general, people were reluctant to go out, even after the ban was lifted. Fortunately for the casinos, this did not last too long.
High inflation and the war in Ukraine remain. However, as Claus Niederalt told Stern, the impact of these circumstances on the acceptance of gambling is much less than expected. The smoking ban had a more devastating effect on gambling. Despite (or perhaps because of) the ever-increasing costs, the willingness to spend money on gambling is growing.
Online gambling on the rise
The huge and growing popularity of online gambling is a recurring theme in our reporting. It is estimated that around two million Germans regularly play in online casinos. Male players between the ages of 25 and 44 are particularly fond of these gaming platforms and are using them more and more.
However, the popularity of casino games is also increasing among other age groups. Among other things, this development is linked to the legalisation of such offers and the creation of safe conditions. Even among older people, the number of players is growing. These people are also increasingly using the Internet.
In this context, technological developments are having a significant impact on the online gambling market and its acceptance among Germans. The increase in the use of mobile devices, i.e. smartphones and tablets, is particularly noteworthy. These devices make online gambling even easier and more accessible from anywhere. Approximately half of the customers of online casinos no longer play on their home PC or Mac, but via portable devices. All this undoubtedly has an impact on the use of land-based casinos.
Conclusion
Claus Niederalt is in a good mood when it comes to the turnover of the Bavarian casinos, and he obviously has every reason to be. If the 60 million in gambling revenue of the first half of 2023 is repeated in the second half of the year, that would mean another immense plus over the already good previous year. Of course, Niederalt can only guess whether the trend will continue.
But it would be desirable because of the diversity of the German gambling landscape, which is guaranteed by the revenues. Online casinos clearly have strong advantages, but a visit to a - perhaps traditional - casino remains a special experience that many gamblers would not want to miss.
Image source: https://pixabay.com/de/photos/spielbank-casino-fassade-188887/
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