| Reply via web post | Reply to sender | Reply to group | Start a New Topic | Messages in this topic (1) |
[vpFREE] Micro & Macro-Economics of the Casino Industry (updated for 11/2013)
This was originally submitted 7/2012. Updated figures are from a Nov 2013 Business Week special issue. Note the trend. It may seem grim but remember that the smaller gaming revenue gets, the more significant the low- & mid-roller market becomes in a shrinking market. I wouldn't be surprised if a major player like Wynn or Adelson abandons LV in the future. Updates are in <<<<brackets>>>> & CAPS.
That was the title of a speech that I attended on July 6th by William Eadington (Univ of NV-Reno, professor who has written extensively on the casino industry). This was one of the programs for the Mensa annual gathering at Silver Legacy in Reno.
Figured I better submit this before I forget all the details.
Prof. Eadington really knew his subject as he was tossing out facts non-stop during his 90-minute speech.
Some fast facts:
In 1988, there were only 2 states with gambling. Now there are 40.
Gambling has been in Las Vegas for 80 yrs, reaching $8 billion in 2011.
<<<<$7 BILLION (PROJECTED) IN 2013)>>>>
The new era of modern casinos in Macao started in 2004. In 2007, revenue equaled LV revenue. It's now at $34 billion.
<<<<$43.3 BILLION FOR 2013>>>>
In 2010, Singapore opened 2 casinos. Next yr the 2 casinos did $6 billion & are the most profitable casinos extant.
<<<<$6.2 BILLION FOR 2013, STILL 2 CASINOS)
<<<<OTHER MARKETS 2013 PROJECTED: $5.2 BILLION FOR SOUTH KOREA, $3.9 BILLION FOR AUSTRALIA, $2.2 BILLION FOR PHILLIPINES>>>>
<<<<IF JAPAN LEGALIZES CASINOS, PROJECTED REVENUE IS $10 BILLION>>>>
The facts above explain where the Asian high-rollers went. What about the others? For NV, the proliferation of Indian casinos in CA has literally gutted its target market of gamblers from SF Bay Area & Southern Cal. dropping visitor count by half to two-thirds. Today CA has 64 casinos & $6 billion in revenue.
<<<< DON'T HAVE FIGURES FOR CALIFORNIA ET AL. CAN ANYONE PROVIDE THEM? >>>>
If you think the pie can't be spread much thinner, you'd be wrong. The shocks still to come are the spread of gambling to the last 10 states but that's not the worst of it. If Internet gambling is allowed (just a matter of time) and sweepstakes gambling parlors **(strip mall shops disguised as Internet cafes) spread, these would mimic the casino experience with the same games with the difference that you could stay put & play your favorite games. In other words, you don't need to make a trip to real bricks & mortar casinos.
Prof. Eadington wasn't trying to be downbeat about the industry but that's the way it came out. Afterwards I asked him if there was any way to reverse the trend, especially in NV. He thought about it for a minute & said "No I can't think of any."
__._,_.___
.
__,_._,___
