2008 National Commercial Casino & Racino Gaming Revenue Analysis
A Period of Adjustment
Oops! That great hissing sound may be the gaming balloon which had been increasing throughout the years, gradually losing air. However, it hasn’t been a tide which lowered all ships however, as several expanding and emerging gaming jurisdictions showed solid growth in 2008.
Overall, the business as well as racetrack casino sectors (excluding Indian gaming), experienced a 3.5 percent decline in gaming revenues for 2008, generating a total of $36.2 billion, down some $800 million from 2007. It was the Racino area that’s tempered this fall, as they showed a gain of about one dolars billion in 2008, thereby bringing the Commercial community market decline to $1.8 billion, or maybe 6.7 %. Nevada was the biggest loser in 2008, dropping nearly $1.3 billion, over 50 % of that stemmed from the Las Vegas Strip segment.
Hunkering Down
For probably the most part, casino operators happened to be found fairly flat footed by the extent of the 2008 revenue downturn, промокод с Mel-kod.com as it was not until the fourth and third quarters when it truly nosedived. To rid the crest of year over year market progress across the nation and also the accessibility of good credit as well as equity funds, new expansion and construction proliferated in recent years. Today, faced with the realities of declining, or at best stagnant demand, a lot of these tasks are currently viewed as over-leveraged and/or over-sized. As a consequence many gaming companies are going about trying to renegotiate the debt of theirs – made more challenging by reduced valuations – while also paring down operational costs. The latter has become an incredibly problematic conundrum when dealing with the competition, especially in those jurisdictions which are today vying for market shares with new emerging casino projects in neighboring areas. A subject we talk about a lot more completely in the State by State analysis section of this publication.
As a consequence of these problems the gaming industry landscape is now strewn with approaching fatalities. Among the far more notable stressed firms are Station Casinos, Empire Resorts, Harrah’s Entertainment, Tropicana Entertainment, Legends Gaming, Greektown Holdings, Herbst Gaming; as well as the list become larger weekly.
“How long will these economic circumstances persist, and therefore are we in the bottom yet?” are questions no one seems to be responding to just yet. What is clear however is that most gaming jurisdictions will have to learn how to cope with a smaller pie.
Note:
This particular evaluation has only gaming revenues of licensed casinos as well as pari-mutuel shops that provide casino video games, and not Indian gaming operations, card rooms, or small non casino type slot places. The entire article, such as revenue tables can be bought on the web page of ours.