With the recent announcement of Atari's (IFGA 3.69%) plans to build a virtual casino in the metaverse platform Decentraland (MANA -4.41%), yet another huge name is stepping into the metaverse with a plan to make money and entice people to participate in the next iteration of the internet. A casino is an interesting choice, though not an original one by any stretch of the imagination.
In fact, there are several casinos already active in Decentraland, with the first, Chateau Satoshi, opening in February 2020. Others are in progress in other metaverse platforms like The Sandbox (SAND -5.09%). They're just one of many types of experiences users can have, and metaverse real estate investors can benefit both in direct profits from gaming and indirect passive income from renting the properties to gaming companies like Atari.
Metaverse casinos offer high competition and high stakes
Although metaverse casinos can be a big gamble for anyone starting out, those that make it have the potential to make it big. That's why they can be a valuable tenant or a valuable asset for a metaverse real estate investor. Like anything in the metaverse, solid, reliable history and figures are hard to come by right now, but we do know that one of the top casino chains, Decentral Games' (DG) ICE Poker casinos, brought in $7.5 million in revenue for the three months ended in February. And according to its website, it had $7 million in revenue for the 30-day period ended April 11.
Clearly, other companies are seeing the value in metaverse gambling, which is why both Atari's Vegas City casino and casino hopeful Sand Vegas Casino Club are diving in deep, fighting for a first-mover advantage in the space.
Sand Vegas Casino Club, unlike Atari, plans gambling facilities in both The Sandbox and Decentraland, with its Sandbox facility to be completed between May and October 2022, depending on regulatory hurdles.
Image source: Getty Images.
The advantages to a metaverse casino
There are a few ways for metaverse real estate investors to win big with metaverse casinos. They can simply own the land in a good location, such as Decentraland's Vegas City (where Atari is building), and lease it to a casino hopeful with a longer-term lease. Atari's lease is for two years, for example.
Metaverse real estate investors could also take it all the way and open their own casinos, if their local laws allow for it. A quality coder will be necessary to ensure that people who live in areas where gambling isn't legal can't participate, keeping it all on the up and up, and a gaming license is required. Check with your local gaming commission for more details about how to secure a license in your state.
If you have the land and significant capital, a casino could be a solid investment, since the majority of the money you put in is in development. There are no real-life employees to run the facility or anything like that. Once it's paid for, besides general upkeep and updates, it's paid for.
On the down side, as a casino owner, you could also lose everything. You could lose everything as a real estate investor in the metaverse, as well. Investing in casinos in the metaverse is not a guarantee, but gaming in general, when implemented in a way that seeks to build community (which is the main goal of the metaverse in general), can produce a viable income stream.
The best casinos in the metaverse are now integrating creative structures with well-known games, and non-fungible token wearables or other community-building tools to keep people invested and coming back for more. Big brands are also a boost, but not a requirement, as the brands that will rule the metaverse in many ways still aren't clear.