Dynamics of Bucharest’s casino sector – a study on tourist contributions and success factors?
Professor Lorin Dragan and Dana Hirgau, a master’s student at the Faculty of Economics at the University of Iasi, Alexandru Ioan Cuza, conducted an insightful study on the land-based casino market in Bucharest. Their research aimed to explore two primary aspects of this market.
Firstly, they sought to determine the extent to which tourists contribute to the customer base of Bucharest’s casinos. This question is crucial for understanding the market dynamics and the role of international visitors in the local gambling industry. Secondly, the study aimed to identify the critical success factors that influence international customers’ experiences in Bucharest’s casinos. This involved examining the cultural differences that might affect gambling behaviors and preferences, providing a nuanced understanding of what drives success or failure in this sector.
To address these questions, the researchers proposed two hypotheses. The first suggested that a significant portion of casino customers in Bucharest are tourists. The second hypothesis explored the universal factors that contribute to the success or failure of casinos, regardless of cultural differences.
Bucharest attracts 50% of Romania’s tourists
According to the Romanian Tourism Statistical Report 2020, Bucharest attracts approximately half of all tourists visiting Romania. Additionally, Bucharest stands out as the most significant gambling market in the country and one of the largest in Central and Eastern Europe.
Out of a list of 83 operational casinos five casinos were selected for detailed analysis, including two located in the Marriott and Radisson Blu hotels. The researchers then analyzed reviews from Google Maps available at that time. They determined the origin of the customers who left reviews and created a table listing all the countries and the number of reviewers from each. Another part of their study distinguished between Romanian and foreign customers, calculating the total odds and the odds for each casino.
Israelis, Italians, and Greeks: the main foreign players
The study revealed that Israeli tourists are among the most frequent foreign visitors to Bucharest’s casinos. However, many of the negative reviews were posted by Israelis, who often complained about the limited variety of games and the presence of other Israelis who they found bothersome for unspecified reasons. Another common complaint was the quality of service provided by the casino staff, which they felt did not meet the standards they were accustomed to in Israel. Specific issues included the speed of service and the conditions required to access free drinks and buffet services, which they believed should be more generous.
Italians ranked second among the foreign visitors. They were drawn to these casinos by the high level of appreciation for the staff and the lower betting amounts. Researchers noted that Italians generally rated Bucharest’s casinos higher than Israeli visitors, with most reviews being four stars or above. Many Italians praised the kindness and respect shown by the staff, as well as the higher chances of winning compared to casinos in their own country. Out of 71 Italian reviews, only two suggested improvements, such as better customer selection and more poker or blackjack tables.
Greeks were the third most frequent foreign visitors, leaving 40 reviews, all of which were positive. They particularly enjoyed the atmosphere at the casinos, especially at the Platinum Casino and Grand Casino Marriott. Greek visitors appreciated the pleasant environment, the thrill of approaching a potential win, and the friendliness of the staff. They also valued the lively spirit of the Romanian people, who they found to be enjoyable companions in the casino setting.
Romania’s potential for gambling industry development
Romania has significant potential for the development of its gambling industry, as it already attracts a substantial number of international tourists who come to play in its casinos. The study found that foreign players with negative experiences at Bucharest casinos were in the minority. The main sources of dissatisfaction included the entrance fee, low win rates, and the behavior of other customers, particularly Romanians and Israelis. Interestingly, unlike Romanians, most foreign visitors, except for Israelis, did not express dissatisfaction with the service, staff, facilities, or overall atmosphere of the casinos. This suggests that the casinos are generally well-regarded by international guests.
The researchers concluded that the majority of customers value hospitality the most, followed by the casino’s atmosphere and the services offered. Most negative reviews were related to the casino equipment and the convenience and conditions of the casino.
Looking at other segments of the Romanian casino market, Statista predicts that the online gambling market for example will reach $809.5 million in 2024, with an annual growth rate of 5.6% from 2024 to 2029, resulting in a market size of $1.063 billion by 2029. This growth indicates a promising future for Romania’s gambling industry, both in land-based and online sectors. Here’s the bar chart representing the predicted market size of the Romanian online gambling market from 2024 to 2029. The chart shows the growth from? 2024 to 2029:
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