How Do Gaming Establishments Affect Property Prices?
Casino gaming has become more accessible in recent years as more and more US states have legalized online wagering. This means that there is a growing number of Americans who have the convenience of being able to play their favorite card, table and slot games right from their smartphone or computer. As this happens, sites like OddsChecker have stepped up to help players find the best casino bonuses in the US, so they can get more value from their gaming.
However, online casino gaming isn’t possible everywhere yet. Take here in New York as an example, the state allows online sports betting and in-person casino gaming, but you can’t currently enjoy those same real-money games online.
This means that there remains a lot of demand for land-based casinos right across the country. In fact, in many states, the number of these venues continues to grow, even as online gaming becomes even more popular.
But what impact do these gaming establishments have on the prices of nearby property? Are casinos a boon, or are they ballast on the real estate market?
Not a Simple Answer
While we’d love to just give a simple, straightforward answer of “casinos increase house prices” or “casinos reduce house prices”, the reality is much more complicated. Over the years, there have been many studies that have tried to answer this question, but they have yielded mixed and conflicting results.
But when you examine these pieces of research together, you can begin to spot patterns and trends that give us a clearer picture of how casinos can influence property prices and the real estate market in general.
Here are some of those factors.
Infrastructure
Most casinos are big and attract a lot of visitors. These guests all need looking after, requiring many employees to be at the venue at any one time. The patrons and staff will all have to use the roads to drive to the casino, placing an increased strain on the local roads.
If the existing roads are poorly designed or not sufficiently big enough to handle this increase in demand, it can lead to congestion.
Generally, congestion is bad for house prices, as it makes getting in and out of the neighborhood more difficult. It also increases noise and air pollution, which can have a negative effect on the quality of life for people living nearby.
Local planning departments can place stipulations on any licenses or planning applications that require casino owners to fund infrastructure upgrades. If done right, this can offset the effects, removing any downward pressure on property prices.
Increased Demand
If a casino attracts workers from outside the local area, then this can create an increase in demand for housing around it.
In 2008, 445 commercial casinos and 44 racetrack casinos across 20 states generated $39 billion of revenue. 14 years later, we can confidently assume that figure is significantly larger.
Even if it hasn’t increased, that’s a large sum of money, and a lot of it will find its way into the pockets of casino employees in the form of wages and bonuses. Many of them will then use it to purchase a house near to where they work.
If demand increases while supply remains static (or doesn’t grow at the same rate), then this will push house prices up. Even if the workers choose to rent, this just adds an extra step in the process as more landlords will enter the space to serve the renters.
The Type of Casino
There are typically two types of land-based casinos: “destination casinos” and those that serve day-tripping guests.
The former is more attractive for local neighborhoods, as guests are likely to spend more time (and money) there, increasing revenues that are effectively exports to other parts of the country. Someone who stays at a casino resort for several days is also going to use the local roads less frequently, reducing the strain on infrastructure.
However, those that rely mostly on local players who drive there and back in a single day have fewer economic benefits.
This, therefore, means that destination casinos are more likely to have a positive effect on property prices while those for day-trippers are more likely to do the opposite.
