Private Motorsports: A Gaming Super Amenity?

Prior to the era of COVID-19, The Innovation Group was monitoring how non-gaming amenities were evolving to adapt to changing consumer tastes and preferences, to keep guests at casino resorts longer, and to attract new guests. From TopGolf to eSports arenas, we termed these concepts "Super Amenities." We continue to believe brick-and-mortar operations will show resilience. This belief is supported by the strong recovery in regional markets throughout the United States. What about property footprints outside of the gaming floor moving forward? How will non-gaming amenities need to evolve in the age of social distancing?

This article by TIG's Michael Vanaskie explores one unique and emerging development concept that is positioned to perform well in the age of social distancing, garage condos, and private motor track developments.

PRIVATE MOTORSPORTS: A GAMING SUPER AMENITY?

by Michael Vanaskie, Vice President, The Innovation Group

Here at The Innovation Group, we've been spending a great deal of time contemplating what the future holds as the world emerges and recovers from the COVID-19 pandemic. Like the rest of the domestic gaming industry, we've watched iGaming experience incredible growth in the wake of stay-at-home orders and brick-and-mortar casino closures, with total year-to-date domestic iGaming revenue increasing nearly 200% through June to over $634 million.

Outside of the gaming industry, we've watched New Yorkers trade apartments in high rises for homes with backyards in the suburbs, mall landlords begin negotiations with Amazon to turn bankrupt anchor stores into fulfillment centers, and RV sales reach record levels.

While we recognize not all of these trends will hold, we'd be naïve to think that the pandemic won't cause lasting changes in consumer (and gamer) tastes and preferences. We do believe that brick-and-mortar gaming will recover to pre-COVID levels by adapting (as it has in the past) and resume growth. Our stance is supported by the strong recovery in regional markets throughout the United States. For many gaming resorts in the U.S., though, the casino is just one of many components intended to generate revenue and repeat business. Even before COVID-19 we saw gaming resorts evolving their non-gaming footprints to cater to new tastes and preferences through TopGolf, Brooklyn Bowl, and similar "Super Amenities." What about property footprints outside of the gaming floor moving forward? How will non-gaming amenities need to evolve in the age of social distancing?

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