Casinos have always played a big role in driving the economies of cities around the world. Think of Las Vegas, Macau, and newer hotspots in Europe and Asia. Whenever a big-name casino pops up, there’s usually a noticeable jump in property values, new development, and a wave of urban renewal. The upcoming Wynn Al Marjan Island resort in the UAE is no exception, especially since it’s bringing the country’s very first casino inside its 70-storey hotel tower. But that raises the question – can a single casino really turn a city into a real estate hotspot?
One of the big changes that often comes with large casinos is how regulations shift, especially when it comes to online gambling.
How casinos have impacted the real estate market through job creation
Look at the UK. It already has a strong land-based casino scene, but many British players still head to offshore casino sites that aren’t part of the country’s GamStop self-exclusion system. These sites often have fewer restrictions, which can be appealing to some players.
A report from the Betting and Gaming Council in 2021 showed just how important the regulated industry is to the UK economy, supporting around 119,000 jobs, contributing £7.7 billion ($10.4 billion), and generating £4.5 billion ($6.1 billion) in taxes each year.
If a city turns into a major gambling destination, that momentum could spill over into the online world too. There’s potential for new local online casinos, more relaxed regulations, and room for digital gaming businesses to grow.
Research from the Social Market Foundation in 2021 highlighted how important gambling is to certain areas. In Stoke-on-Trent, for example, the industry accounts for 2.5% of all local jobs, mostly because it’s home to bet365. Three Rivers follows at 1.7%, thanks to the Camelot Group. Everywhere else, gambling-related jobs make up less than 1% of employment.
5/8 We found that while the industry makes a sizeable contribution to the economy, lower gambling spend would nevertheless be a net positive – with jobs and tax revenues from elsewhere more than offsetting losses in the gambling industry.
— Social Market Foundation (@SMFthinktank) March 1, 2023
However, the foundation added a caveat, stating that it was important to address gambling harms: “We found that while the industry makes a sizeable contribution to the economy, lower gambling spend would nevertheless be a net positive – with jobs and tax revenues from elsewhere more than offsetting losses in the gambling industry.”
We’ve seen this in Malta, as the country’s focus on IT and gaming has certainly paid off for real estate. As more gaming companies set up shop, property demand shot up, increasing land value and revenue. Ongoing investments and licensing keep demand high, with both local and international investors jumping in to upgrade and expand accommodations.
According to the Malta Asset Servicing Association, the iGaming industry contributes around 13% towards the GDP of the country, thus providing a source of livelihood to some 10,000 employees.
The effects of casinos on infrastructure and real estate
Besides regulatory changes, physical casinos have had a big impact on real estate by pulling in tourists, creating jobs, and encouraging new businesses to move in. These massive resorts attract thousands of visitors every year, which drives demand for everything from hotels and restaurants to shopping centers and luxury housing.
Places like Las Vegas, Macau, and Singapore have all seen their property markets heat up after major casino developments. When Marina Bay Sands opened in Singapore in 2010, property prices in the area surged, making it a magnet for investors.
In fact, last month, Marina Bay Sands (MBS) reported that its adjusted property earnings before interest, taxes, depreciation, and amortisation rose by 1.34% compared to the same time last year, reaching $605 million.
Similarly, the MGM Grand in Las Vegas helped draw over 42 million visitors in 2024, giving the city a huge financial lift.
A big reason these casino-driven booms last is because of major infrastructure investment. Once the money starts flowing, it spreads throughout the city. John DeCree told Pere News that this is believed to be happening because states are legalizing casinos as a way to boost tax revenues.
He says: “Generally, need for economic development or tax revenue drives the casino pipeline, given it is a highly regulated environment. States like Illinois with known budget deficits often look to gaming as a source of tax revenue.
“The other catalyst is typically the domino effect, where a state is losing consumer dollars to casinos in adjacent states along the border.”
And the US gaming market is expected to keep growing steadily. According to market research group Mordor Intelligence, it’s projected to grow at a rate of 9.4% each year over the next five years. That would take the total market size from $58 billion this year to around $90 billion.
Strategic partnerships between casinos and governments
Ollie King, Managing Editor at CasinoBeats, says the connection between casinos and real estate is becoming more strategic, particularly in big cities like New York.
“New York current casino bids (three licenses available) are tied into affordable housing pledges, etc. So there’s definitely a real-estate, job creation aspect there too,” King told ReadWrite. This means that city and state governments may be using casino licenses as leverage to stimulate broader urban development goals.
“In the UK, there’s a stark concentration of “cashinos” and these 24/7 amusement/slots venues in areas with lowest GDP per capita, and zero in affluent areas (tied to real estate prices).” Ollie King, CasinoBeats Managing Editor
King also stressed that casino impacts are heavily shaped by regulation and geography. “Some countries have laws against casinos being within X km of towns, or Y metres of schools,” he noted, pointing out how real estate outcomes are closely tied to zoning laws and social policies.
In the UK, he added, “there’s a stark concentration of ‘cashinos’ and these 24/7 amusement/slots venues in areas with lowest GDP per capita, and zero in affluent areas (tied to real estate prices).”
The contrast shows how casinos often end up in lower-income neighborhoods, where land costs less and there’s usually less pushback from residents. Consequently, it can have a big impact on the local property market.
“This is playing out in slots venues across the country, people losing massive amounts that impacts their mental health and their families.”
Jackie Olden and Nick Harvey on why councils need to be given more powers to refuse slot venue licences. pic.twitter.com/7LBa98Z7R0
— Clean Up Gambling (@cleanupgambling) June 11, 2025
Adding to the regulatory picture, Atanas Tanev, founder of iGaming affiliate company Websa LTD, provided insights on how many countries use strict zoning laws to manage where casinos can be located.
“Casino proximity regulations are in force in many countries as part of broader efforts to promote responsible gambling and protect vulnerable groups,” Tanev explained.
“In Bulgaria, for instance, casinos must be located at least 300 meters away from schools, kindergartens, hospitals, and similar institutions — a standard mirrored in countries like Germany, the UK, France, and several US states.”
He also noted that cities like Berlin and London have even stricter rules about how many gambling venues can operate in certain areas. The regulations play a big role in deciding where casinos can be built and also shape their impact on the surrounding real estate.
Tanev described the mixed effects of land-based casinos on property values. “On the one hand, studies by the University of Nevada – Las Vegas (UNLV) indicate that in gaming hubs like Las Vegas and Atlantic City, real estate prices near major casinos initially rise due to increased infrastructure, job creation, and tourism,” he said.
But the story isn’t always so positive. “Reports submitted to the UK Gambling Commission suggest that in residential neighborhoods, especially those with smaller gaming halls, the presence of gambling venues may decrease property attractiveness due to public perception and concerns over social disruption.”
He added: “The combination of strict zoning regulations and increasingly negative public sentiment toward physical gaming halls is indirectly contributing to the accelerated growth of online casinos.
“Which is why we were intrigued initially by this topic and did our due diligence.”
Casino success dependent on external factors
From a real estate investor’s perspective, casinos can be a double-edged sword as they offer the potential for big returns, but their impact on the market can be hard to predict.
Daniel Cabrera, CEO of Fire Damage House Buyer, said, “Casinos tend to create jobs, tourism, and improved infrastructure that can cause property prices and demand in the surrounding areas to rise.”
“The development of a casino tends to shift zoning priorities and alter city planning, with an impact on where and in what manner real property evolves.” – Daniel Cabrera, real estate investor
However, he cautioned that success isn’t guaranteed. “Depending on where the casino is situated and its level of success, neighboring communities might experience expanded commercial development… or alternatively, increased traffic and noise that discourage buyers.”
Cabrera also pointed to speculative buying as a possible distortion. “Speculative buyers could purchase homes in areas around an impending or new casino in anticipation of value appreciation, distorting local pricing patterns,” he said.
And from a city planning perspective, “The development of a casino tends to shift zoning priorities and alter city planning, with an impact on where and in what manner real property evolves.”
International backlash against casinos
Around the world, casinos are viewed as both high-risk investments and key anchors for real estate development. King showcased MGM’s interest in expanding to Thailand, drawn by the country’s low construction costs and strong appeal to tourists.
“MGM have previously said that their China sub’s balance sheet is under levered so investment in a Thai complex is something they’re keen on,” he said.
But political uncertainty remains. “The government are arguing it’s great for tourism but then the opposition are arguing that it’s a terrible idea. So they’re going round and round in circles a bit and calling for a referendum too.”
Casinos definitely have an impact on the real estate market, but the effect can swing in either direction. When well-regulated and integrated into broader development plans, casinos can help with property values, attract investment, and create jobs.
But in areas with lax oversight or social resistance, they may have the opposite issue, lowering neighborhood desirability and disrupting local housing markets. It’s hardly surprising that some local governments are taking a cautious approach.
Featured image: Grok
