Boom In US Gambling Boom Set To Continue

Published: Friday, June 24, 2005 Online-Casinos.com

BOOM IN US GAMBLING SET TO CONTINUE

And the PricewaterhousCoopers figures don't even include Internet operations...

A new study on gambling released this week by internationally respected business services group PricewaterhouseCoopers contains new long-range projections that have gambling revenues growing at a compound annual rate of more than 8 percent over the next 4 years to an expected $100 billion global pie.

According to the Global Entertainment and Media Outlook Study, casino gambling revenue nationwide in the USA will jump from last years' $47.3 billion to $64.1 billion in 2009.

And that includes only the legal, tracked revenues brought in by the nation's casinos and "racinos," be they on Indian reservations, the Jersey Shore or the Las Vegas Strip.

Parimutuel betting, lotteries and Internet gambling are not figured in.

Nevada will see fastest growth in the States, the study said, due to an improved economy and new casino openings. It cited the recent launch of Wynn Las Vegas; the recent combinations of MGM Mirage with Mandalay and Harrah's takeover of Caesars; and other big-money plans including Las Vegas Sands' 3,000-room Palazzo that is set to open next to the Venetian in 2007.

Meanwhile, Atlantic City's take could grow from $4.8 billion last year to $6.3 billion by 2009 and the regional casino category, which includes the "riverboats" of the Midwest and South, will go from $13.4 billion to an even $16 billion over the same period..

Tribal casinos will still rake in the most, though, with an estimated $26 billion in 2009, vs. $18.5 billion in 2004.

Overseas markets will grow rapidly, too with the Asian Pacific region the most vibrant of all as multinationals move in and countries including China (in Macao) Taiwan, Japan, Thailand, Singapore, Malaysia, Korea, Australia and the Philippines open up to or expand casino gambling opportunities.

The region can expect a 15.9 percent compound growth rate out to 2009, the year when gambling revenues will reach $18.5 billion.

Two other regions, Europe-Middle East-Africa and Latin America, will grow at rates of 7.9 percent and 12.6 percent. Factors moving them along include an expected loosening of regulations in the U.K. and legalisation in Mexico and Chile.

The U.S will remain the largest gambling market. At top properties in Las Vegas, food, hotel rooms, entertainment, stores, spa treatments and the like often bring in more money than gambling.

MGM Mirage has big Vegas ambitions and is preparing to hit Las Vegas with its Project CityCenter, a $4.5 billion undertaking to feature thousands of new hotel rooms, a cluster of condo towers and a host of restaurants, stores and entertainment venues. It is expected to open in 2010.