Gambling Market Assessments
Entering a gambling market, particularly in the development of new casinos, is inherently high-risk. The initial capital expenditure is substantial, involving not only the construction of gaming facilities but also investments in supporting infrastructure, staffing, licensing and regulatory compliance. Success in this sector depends heavily on accurate market sizing and rigorous feasibility analysis.
StratEcon supports both private-sector casino operators and public-sector Gaming Authorities in navigating this complex and high-stakes environment. For operators, one of the most critical commercial risks lies in calibrating the size and scale of the casino to the local market. A facility that is too small may lead to overcrowding, diminished customer experience and constrained revenue potential. Conversely, an oversized casino not only inflates operational costs and capital exposure but also risks chronic underutilization, which can jeopardize the financial sustainability of the venture and diminish the overall customer experience.
Through its data-driven feasibility assessments, StratEcon provides casino developers with robust demand forecasts and scenario modelling that account for demographic trends, income profiles, tourism flows and competitor activity.
Equally, for Gaming Authorities, the challenge is to strike a regulatory balance, fostering investment and competition without leading to market oversaturation or undermining responsible gambling objectives. StratEcon supports regulators by conducting market capacity assessments, economic impact analyses and saturation risk evaluations. These insights inform licensing decisions, the allocation of new casino rights, and broader gambling policy frameworks.
In all cases, StratEcon brings to bear its multidisciplinary expertise in economics and regulatory strategy to help clients make informed, evidence-based decisions. Our track record includes detailed market assessments for proposed gaming developments, economic viability studies for new casino sites and policy advice on sustainable industry growth. By doing so, we help ensure that gambling investments contribute to local economic development while remaining commercially viable and socially responsible.
Some of our Larger Projects and Clients are:
-
Western Cape Government Provincial Treasury for analysis in the Western Cape gambling industry and development of a position paper informing the green paper on gambling in the province.
-
Western Cape Government Provincial Treasury for analysis into the Western Cape horse racing industry.
-
Racing South Africa for analysis of the national horse racing industry.
-
Market analyses for potentially new and existing Sun International casinos at Sun City, Grand West, the Boardwalk, Menlyn Main, Burgersfort, Kuruman, Windhoek (Namibia), Gaberone (Botswana), Livingston (Zambia), Lagos (Nigeria), London & Sheffield (United Kingdom) and Moscow (Russia).
-
Market analyses for new Peermont casinos at Burgersfort and Hartbeespoort Dam.
-
The Casino Association of South Africa for its submission to parliamentary hearings on gambling in South Africa.
-
The rollout of Limited Payout Machines (LPMs) in the Western Cape, KwaZulu-Natal, North West province and the Free State.
-
Assisting the Vukani Gaming Corporation with legal challenges relating to Limited Payment Machines (LPMs).
-
Consulting to the Eastern Cape Gambling Board on the economic contribution of gambling in the province.