Why Some Brick-and-Mortar Casinos Don’t Go Online?

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The UK boasts one of the most robust gambling industries in the world, thanks to its regulatory framework that provides clarity to operators and a series of protections for consumers.

The industry has been bolstered in recent years by the growth of online operations, with established brands and new independents vying for attention in an increasingly competitive market.

In order to stand out from competitors and reach new audiences, many operators offer an extensive selection of games, implement strong security protocols, and offer a variety of incentives. (Source:https://esports-news.co.uk/online-casinos/)

However, whether existing operations move online comes down to a variety of factors, with some choosing to stick with brick-and-mortar facilities.

The Online Migration of UK Casinos

The switch to online operations is not restricted to casinos, with all types of different industries taking advantage of the improved reach and convenience of customers being able to access services and products no matter where they are.

The standard of online casinos is constantly improving, and many of the UK’s largest bookmakers have focused on their online services as the rising costs of multiple town and city centre locations began to threaten their futures.

As the number of bookmakers and retail casinos continues tob drop, the number of online alternatives increases, with operators able to make significant savings on staffing and property maintenance.

Their existing operations gave them a platform and customer base to ease the transition, and many can now offer a variety of casino-style games that they would not have been able to in certain branches.

Why Some Casinos Choose Not to Offer Online Versions?

With the majority of consumers now having easy access to the internet via smartphones and other mobile devices, it might seem like the obvious choice for casinos to expand to offer online gaming. However, there are some good reasons why some have chosen not to.

Additional Licensing Requirements

Physical casino operators are not automatically permitted to offer online services, and they have to apply for a Remote Gambling Licence. This license is issued by the UKGC (UK Gambling Commission), and operators will face additional fees and compliance checks to ensure they are in a position to offer a secure and fair product to customers.

Compliance and Set Up Costs

There is a massive difference between physical casino gaming and iGaming, and traditional casinos would have to invest significant amounts of money to set up the infrastructure to support a high-quality gaming site. As well as offering a selection of games, sites need to offer state-of-the-art security and comply with a series of regulations.

Age verification technology and tools to protect players can be expensive to set up and maintain. Sites will have to securely store customer data, while anti-money laundering, cybersecurity, and regular auditing are all considerations, too. The cost of setting this up can be too much for some smaller casinos.

Competition Against Established Brands

Competition between physical casinos is typically location-related, whereas all online casinos are in competition with each other. In some respects, this can help smaller casinos reach a wider audience, but it also means they are competing against some of the biggest brands in the country.

Online casinos backed by well-established businesses already have the reputation and brand awareness that can attract customers. They will also have the funding to ensure they offer the latest games and a variety of enticing deals.

Sign-up deals and loyalty programs are a massive part of online casinos as operators attempt to attract new customers and improve retention rates.

With so many deals on the market, there is nothing stopping players from simply moving from one to the other, so operators must invest the time and money into ensuring the gaming experience is as good as possible, too.

Limited Game Licenses

Most casinos in the UK license their games from manufacturers and developers, and when they do this, certain stipulations about how the games are used are inserted into the contract. In many cases, operators will require an additional agreement with the software provider to allow online operations.

A lot of these games are also designed for specific platforms or gaming machines, and it is not as simple as just putting them online for customers to enjoy. Integrating games into an online platform can take time and require adjustments to ensure they run smoothly.

Business Model

While finances, competition, and regulation can all be significant factors for smaller casinos when deciding whether they want to branch out into iGaming, others might have a business strategy that they want to stick to. Land-based casinos offer in-person gaming, providing an experience that can’t be replicated online.

As well as gaming revenue, many venues also offer live shows and events, have hotel facilities, and offer dining options. Moving into online gambling would shift the perspective of the operation in a different direction, and some casinos have no interest in doing that.