There’s been a noticeable shift lately in the casino industry…

Casinos are removing their live dealer table games.

Most recently, it was the Golden Gate Hotel & Casino in Downtown Las Vegas.

They’ve decided to replace the labor heavy games with electronic table games (ETG’s), which makes them the first casino in that part of the city to eliminate human dealers.

Market leaders? Trend setters? A nervous CFO?
Probably not.

I’m sure with the slowdown of tourism, this move simply comes as the Las Vegas gaming industry faces a period of evaluation and adjustment. While some see the shift towards ETG’s as a way to increase efficiency and attract a younger demographic, others express concern about the loss of human interaction that many players value at casino tables. Casinos are locked in another battle between innovation and tradition. As for the Golden Gate, they’re simply gambling on the hopes of a high-energy electronic table games pit with faster gameplay and the newest machines.

Much like the famous quote of Mark Twain, “Reports of the death of live table games are greatly exaggerated.” However, they do find themselves facing significant challenges and change. Live table games in brick-and-mortar casinos are not dying but are instead being displaced in some venues by cheaper, more efficient electronic table games (ETG’s) and outpaced by the explosive growth of online gambling. 

But why now?

It could be a variety of reasons:

• Declining revenue share: While traditional slots and table games still make up the bulk of commercial casino revenue, their share is shrinking as online betting and sports wagering grow. Total revenue from land-based casino games was $49.38 billion in 2023, while sports betting and online gaming saw more significant year-over-year percentage increases.
• Operating expenses: Live table games are expensive to run. The high cost of trained dealers, floor supervisors, and other staff makes them a loss leader for some smaller casinos, which are increasingly replacing them with automated and electronic versions.
• Changing player demographics: Younger generations, more accustomed to digital and skill-based games, are generally less interested in traditional table games than older players.
• Shift to online gaming: The COVID-19 pandemic accelerated the shift to online gambling, and many players prefer the convenience of online live dealer games. In states with both land-based and online gaming, a significant portion of revenue now comes from digital platforms. 

But hold on…

There’s evidence of live table games evolving, not dying

• Resilience and record revenue: The American Gaming Association reported that combined slot and table game revenue reached a record $49.78 billion in 2024, demonstrating that land-based gambling remains resilient despite stiff competition.
• Technological innovation: The live dealer experience is thriving online, not just in physical casinos. Live dealer games, streamed from professional studios, have become a major growth area for online casinos, blending the convenience of digital betting with the authentic atmosphere of a real casino.
• The social draw of the table: The social energy and camaraderie of a live craps or blackjack table create a communal experience that electronic games cannot fully replicate. For some casinos, the buzz from a lively table games pit is a valuable asset, even if the direct profit margins are tight.
• Targeting high-rollers: High-stakes players often prefer live table games. Baccarat, in particular, continues to be a high-revenue generator from this crucial customer segment. 

In actuality, it’s really a tale of two gambling markets.

The larger destination casino versus the smaller local casinos. 

Larger Casinos Strategy

Offer a diverse and high-energy gambling experience to attract a broad clientele, including high-stakes players and social gamblers. Continue to invest in live table games, which attract crowds and create an exciting atmosphere. Compete directly with online offerings by enhancing the in-person experience, and may even offer their own integrated online gaming platforms.

 Smaller, Local Casino Strategy

The focus is on maximizing profit per square foot by replacing live games with cheaper, electronic alternatives. Slowly eliminating live tables entirely. The goal is to compete primarily with other local options and concentrate on the most profitable—and less labor-intensive—offerings, such as slot machines.

So, Relax.

Live table games are once again, undergoing a slight transformation not facing extinction. While they are becoming less prevalent in certain venues, they continue to be a vital part of the business model for high-end casinos and are experiencing strong growth in the online gaming sector. 

Rick Harshman is the CEO of H2R Agency, the leading marketing agency specializing in inspired creative and results-driven strategies in the gaming industry. For more information, call (720) 226-3229 or e-mail RickH@H2RAgency.com.