- This topic is empty.
-
Posts
-
U.S. GAMBLING SLOWDOWN?
Economic conditions could add to the burden of UIGEADespite political and law enforcement attempts to derail the US online gambling market, it remains a major contributor to Internet gambling revenues and therefore a new report on US gambling will be read with interest by industry observers. The report, by New York-based Moody’s Investors Service claims that several factors are combining with the “economic slowdown and possibility of a long-term, consumer-based recession” to negatively impact the overall US gambling industry.
“Declining disposable income of potential customers and increasing travel costs are lowering overall visits and spending per visit in many gaming markets,” said the report’s author, Keith Foley, Moody’s vice president and senior credit officer.
On a more positive note, the report concludes that longer-term fundamentals of the land casino industry remain favourable: an increase in the industry’s key demographic base of 45- to 65-year-old customers, major challenges to competitors trying to enter the industry, and rapid advances in gaming technology.
The report’s release was made on Good Friday, a day when the New York Stock Exchange and other financial markets are closed for Easter weekend, but was the findings were acknowledged by gambling group spokesmen as a short-term challenge, although longer-term fundamentals remain favourable.
In February 2008, MGM Mirage, Harrah’s Entertainment and Station Casinos together with several smaller local gaming companies acknowledged that the current economic downturn has forced staff reductions and loss of hours at some properties. However, none of the companies has given hard numbers on the number of employees effected.
“As in other consumer-based leisure industries like lodging and cruises, a decline in disposable income … combined with an increase in the cost of travel results in lower overall visitation and spending per visit,” Foley wrote in the report.
The slowing economy comes while gaming companies throughout the country are dealing with various challenges, such as increasing competition and smoking bans.
Several states reported gaming revenue declines in January, including 4.7 percent in Nevada, 10 percent in New Jersey, 17 percent in Illinois, 8 percent in Indiana and less than 2 percent in Louisiana, Missouri and Iowa.
“The amount and type of competition, along with the amount of capital investment needed to compete effectively, have increased substantially since 2001,” Moody’s Foley wrote.
The various challenges may have a benefit for consumers as the economic slowdown leads “to further increases in promotional activity across most major markets as gaming operators compete more aggressively to maintain visitation and market share.”
Banning smoking in the casinos cannot be helping matters either I know that a few around here are complaining that it is killing their business. I hope that drives more people online at least they can smoke in their own homes(for now at least)
I definitely see it driving up online casino revenue..
I can see the slogans now: “Play from your own home, while smoking..” lol
Non smoking places are good stuff!
Personally I avoided bars where I could not breath anymore because of stinky cigarette smoke. In my country it is now illegal to smoke in most public places and the bars are glad to see my face now more often than ever before! :hehe:
I totally agree. I love the fact I can go out at night and return not smelling like an ash tray…
I know that the same smoking ban in the UK resulted in higher player volumes coming from the offline Bingo halls.
From a gaming conference I attended I heard the most amazing thing- that over 65% of the visitors in Bingo Halls are smokers! If these stats are similar to Casino players, we will see it drive up the traffic. So good days ahead
At least in the past the owners could decide if smoking was allowed or not, now they have no choice. If they wanted to “save” the people they should stop selling them.. but oh the tax revenue on that is too much.
As for the slow down at land based casinos, I think its great as this is year is way up for me over the last 2!
I love the non smoking myself since I am an x smoker it is awesome to not have to be tempted ..lol But I can remember back in the day when I did smoke and let me tell you there was nothing like smoking while spinning the slots away.
Smoking should be managed. There is absolutely no reason why ALL or NONE of any type of establishment allows it or bans it.
It’s all about choices. People should always be free to choose.
