US Gaming Industry in “Stable” Condition States Investors
Written by Matt W | Friday, June 25th, 2010
After several years of the US gaming industry being branded “negative” by assessors, Moody Investors Services have changed their assessment to “stable”. The industry has been in somewhat of a decline for the past two years, and following a global financial crisis and an increase in the popularity of online gambling, revenues at live gambling locations tumbled from 2008.
Gambling and betting companies have run up huge debts in the last couple of years as a result, with investments not seeing any returns. Since 2008, the industry saw a drop in 4.6% in revenue, followed by another 1% fall in 2009.
However, all that seems to be changing now, with the latest report by Moody Investors.
“U.S. gaming revenue was flat year over year in March and April 2010, and it appears the trend will hold for May,” said the group’s Vice President, Keith Foley. “While not a stellar performance, it’s a marked improvement over the consistent, and often substantial, declines of 2008 and 2009. It also has favorable implications for gaming company operating profits, a majority of which comes directly from slot machine and table game revenue.”
A number of things now need to happen in order for the gaming industry to really pick up. For one, the economy has to improve even more so that consumers have cash to spend on gambling entertainment once more.
A number of US states have expanded their gambling options in a bid to keep up with competition, and US gamblers are spoilt for choice with the number of casinos now offering traditional games, as well as card games such as poker.
In the meantime, land casinos need to keep thinking up ways to remain in the race with online gambling sites, which continue to attract players in hordes.
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· Written by Matt W · Filed Under Poker News · Comments Off
