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Las Vegas is the entertainment capital of the world. But did you know this expensive real estate market was a small railroad town 120 years ago? In 1905, the city had 800 residents. It was dusty, quiet, and uninspiring.

Fast forward to 2023 and Las Vegas is one of the most toured cities in the US. What’s more, it’s one of the best places to buy property. All this is because of the influence of brick-and-mortar casinos.

Against that backdrop, we’ll talk more about how casinos impact real estate around the world throughout this guide. Let’s get started.

Increasing Property Values

Perhaps the biggest benefit of having a casino in your neighborhood is that it can increase property values. Think about this. A casino creates employment, which in turn, motivates people to buy homes around the place.

Secondly, casinos attract tourists. These tourists need a place to stay. Although most casinos offer hotel accommodation, it’s often not enough. This inspires other investors to buy real estate close to the casino to provide hotel services.

When you think about it, having a huge casino in your city can improve the local economy. Take Las Vegas. Although some people visit the city to gamble in its casinos. But they also explore other offerings, from nightclubs to pawnshops.

In other words, casinos can make a place increase its demand. And when this happens, it can only mean one thing: higher property prices.

Increasing Demand for Rentals

Location influences the demand for rental properties. Casinos create employment, which in turn, increases the demand for people who want to rent properties. This isn’t limited to home rentals alone.

If you own land next to a casino, you can rent it to a company that plans to start a business in the area. Alternatively, you can create an office building and rent it out to businesses opening up in the location.

Now, one casino may not create a lot of demand for rentals. But imagine if your city approved the creation of a dozen casinos. These establishments employ thousands of people.

What’s more, they regularly hold events that attract thousands of tourists. Think of music concerts, boxing matches, and poker tournaments. People coming to your city for these events require a place to stay, thereby increasing demand for short-term rentals.

Changing the Local Economy

Some businesses can launch in your local city and change its economic outlook completely. Picture technology companies as an example. Let’s say you live in a small city. Then Amazon sets up a warehouse and creates job opportunities for a thousand people.

In the next few years, there will likely be businesses that want to complement what Amazon offers. Likewise, if a casino sets shop in your town, you can be certain nightclubs will open up. There will be hotels and other entertainment businesses.

Of course, this new economy has an impact on the real estate market. With clubs and hotels opening, commercial real estate will skyrocket. Investors will build high-end homes while your quiet town might turn into an entertainment hub.

Beyond changing the local economy, casinos can also change the demographic. Gamblers tend to be young and employed. They may also consist of different race groups, which could turn the city into a small melting pot.

The Government May Get Involved

If one casino gets approved to set shop in your city and succeeds, the government may decide to change zoning laws or property taxes. If your neighborhood gets zoned into an entertainment block, you can be certain the home values will increase.

Of course, zoning might also change your city’s outlook. If it was a quiet town made up of farmers, it could suddenly become a thriving metropolitan. If the government increases property taxes, the rental prices might have to go up as well.

Generally speaking, governments love to regulate the gambling industry. They do this to protect players and generate tax income. However, regulations can be positive or negative for the local real estate market.

Regulations can be positive if they will lead to the establishment of more casinos and related businesses. That’s because this increases employment, demand for local products, and rental properties.

If regulations lead to increased property taxes, some businesses may flee the city. This can mean job losses and depreciating home values.

The Impact of Online Casinos on the Real Estate Market

While physical casinos have long been a driving force in the real estate market, the rise of online casinos is also having an impact on property values and demand. As more people turn to online gambling, the demand for physical casinos may decrease, which could in turn impact the demand for related properties such as hotels, restaurants, and entertainment venues.

However, the growth of online casinos is also creating new opportunities for real estate investors. For example, the data centers and server farms used to support online gambling operations require significant infrastructure and specialized facilities, which could create demand for commercial real estate properties in areas with strong internet connectivity and reliable power sources.

Additionally, online casinos may create opportunities for real estate investors in areas where traditional casinos are not feasible. For example, in areas where physical casinos are prohibited or where land is limited, online casinos could provide a new avenue for gambling-related real estate investments.

Overall, while the impact of online casinos on the real estate market is still developing, it is clear that this growing industry is having an impact on the demand for real estate properties in both traditional gambling hotspots and emerging markets.

Real estate investors who can identify and capitalize on these trends may be well-positioned to benefit from the continued growth of the online casino industry. If you’re interested in exploring online casinos in New Zealand, you can check out the recommendations from Scams.info’s casino experts.

Conclusion

The presence of casinos can change a city for the better. It has happened in Las Vegas, Monaco, and Macau. And it happens in New Zealand neighborhoods where local casinos are established. In most cases, casinos increase and not decrease property prices.