The second country to be looked at as a potential expansion destination for Skycity is in The United States of America (USA). With a population of over three hundred and eighteen million and a GDP of 16.8 trillion USD per year (U.S. Bureau of Economic Analysis, 2014). The USA is an enormously important country where breaking into the market will be extremely influential for any company not just for Skycity. The USA is the largest consumer of gambling products in the world, with over 1500 active casino operating throughout the country. National economic impact data release in 2012 revealed American casino operators were experiencing a third consecutive year of revenue growth and also revealed gambling revenue had reached $37 billion dollars
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However the biggest threat to Skycity’s expansion plan would be the current level of competition within the gambling industry in the USA. Operators such as Caesars Entertainment and SJM Holdings Ltd are the biggest casino operator companies in the world. With their main operations residing within the USA, Skycity’s ability to expand into this market will be made difficult by these competitors. Mentioned previously Skycity is not even the largest operator in Australasia region, trying to expand into a market where your main competitor will have a massive comparative advantage would put huge entry barriers in place, which Skycity might not be able to overcome in the long run if they were to expand into the USA. However one advantage is the relatively lax restrictions on gambling laws. Unlike other countries the USA allows individuals states to whether or not they want to regulate gambling within their state. States such as Colorado, Iowa, and Massachusetts all have relatively unregulated gambling laws, this provides an opportunity for Skycity to expand into these states. However the potential revenue turn over will be considerably smaller compared to states which restrict gambling due to the under saturation of the
However the biggest threat to Skycity’s expansion plan would be the current level of competition within the gambling industry in the USA. Operators such as Caesars Entertainment and SJM Holdings Ltd are the biggest casino operator companies in the world. With their main operations residing within the USA, Skycity’s ability to expand into this market will be made difficult by these competitors. Mentioned previously Skycity is not even the largest operator in Australasia region, trying to expand into a market where your main competitor will have a massive comparative advantage would put huge entry barriers in place, which Skycity might not be able to overcome in the long run if they were to expand into the USA. However one advantage is the relatively lax restrictions on gambling laws. Unlike other countries the USA allows individuals states to whether or not they want to regulate gambling within their state. States such as Colorado, Iowa, and Massachusetts all have relatively unregulated gambling laws, this provides an opportunity for Skycity to expand into these states. However the potential revenue turn over will be considerably smaller compared to states which restrict gambling due to the under saturation of the