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$113 billion by 2017 For Land Casinos

03/26/2012 : LAND CASINO GAMBLING TO REACH $113 BILLION ANNUALLY
 
New GIA study predicts growth will be skewed toward Asia Pacific region by 2017
 
A new survey of the global gambling industry conducted by Global Industry Analysts, Inc. predicts that the land casino market will have grown to $113 billion by 2017, driven mainly by the generation of incremental revenues from upcoming casino gaming facilities and the establishment of new casino gaming centers.
 
A significant portion of this revenue growth over the long term is expected to be skewed towards Asia-Pacific, following the resurgence in consumer spending, lifting of restrictions, and opening of new casinos in attractive markets such as Singapore and Macau.
 
The GIA says that the outlook for the world casino gaming sector hinges on how supply side changes would subjugate the cyclical effects hampering the sector growth over the past 2-3 years.
 
Factors including the launch of large resort casinos in countries like Singapore and changes in visa restrictions in Macau are likely to impact the global casino gaming market in the near term. The global economic crisis had a severe impact on the land-based casino industry as the credit markets considerably tightened and consumer discretionary spending plunged amidst high unemployment rate and low consumer confidence.
 
The consequences were delays and postponements in expansion projects as well as new gaming ventures during the recession, displaying the gaming industry’s high sensitivity to economic downturns. Though the market is currently exhibiting signs of revival in certain countries, the challenges set by a wavering US recovery and the Eurozone debt crisis continues to undermine the overall growth in the global casinos market.
 
Market progress over the near term is expected to remain slow and will take some time before it achieves the previous highs recorded during the pre-crisis years.
 
The GIA study claims that the land industry continues to experience competition from the rapidly expanding online gambling sector and an increasing level of public endorsement for this style of gambling.
 
Recent trends suggest that major global gambling companies are looking to move large sections of their business online but are however faced with a strict regulatory environment.
 
GIA claims that the US comprises the largest regional market, where the industry continues to deal with intense inter-state competition as well as overseas rivals.
 
The impact of economic downturn varied across states, with the land casino market in Nevada being the largest hit due to a significant drop in foreign visitors in recent years. In future, besides the resurgence in economy, the US casino market is expected to gain from an increase in the number of foreign visitors and the legalisation of casino gambling in the state of Massachusetts.
 
Among the regional markets worldwide, Asia-Pacific is expected to post the highest revenues growth to 2017. Various factors continue to shape the bright outlook for casino gaming in Asia-Pacific, including the rising economy in the region, which continues to drive the growth of a thriving middle class and improve the disposable income of consumers, extending the casino gaming sector with a potential opportunity to prosper.
 
The deep affinity of people in the region to various gambling formats including casino gaming is another key growth factor, says GIA. In addition, the launch of new casinos with lucrative and enticing features in various traditional casino gaming centers such as Macau as well as new locations will have a positive impact in drawing more number of visitors.
 
The GIA research report is titled "Casinos: A Global Strategic Business Report" and provides a comprehensive review of trends, issues, strategic industry activities, and profiles of major companies worldwide. The report provides market estimates and projections for global and regional markets including the US, Canada, Europe, Asia-Pacific, Latin America, and Rest of World.


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