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WORLD GAMBLING REVENUES TO TOP $155 BILLION BY 2012
The international business services and auditing group PricewaterhouseCoopers LLP has completed a study showing that global gambling revenue should pass the $155 billion mark in 2012 after growing at an annually compounded rate of 6.5 percent per year.
New casinos and upgrades will push gambling revenues from nearly $114 billion in 2007, the study found, with the Asia Pacific region showing fastest growth with new resorts in the Chinese enclave of Macau as well as Singapore and Thailand generating increases of 15.2 percent annually.
Revenue from the Asia Pacific region will hit $37.2 billion in 2012 compared with $18.3 billion in 2007.
In the United States, total gambling revenue should remain well ahead of other regions, growing at 4 percent annually from $60.3 billion in 2007 to $73.3 billion in 2012, the study found. However, the years 2008/9 would carry tough economic conditions, impacting the Nevada and Atlantic City land business and causing declining revenues in those years.
Mary Lynn Palenik of PricewaterhouseCoopers said the mortgage crisis and high gas and travel prices will lead to the decline. US players were less likely to travel to land casinos due to pressures on disposal income.
The turnaround is predicted for 2010 in Nevada, with revenues expected to reach $14.8 billion in 2012 from $12.8 billion in 2007, an increase of 2.9 percent per year. Atlantic City should be generating $4.74 billion in 2012, down from $4.94 billion in 2007.
The study includes a reference to online gambling, including this with new [land] casinos in Europe, the Middle East and Africa as the driving force behind increased revenues in the regions which will grow 4.9 percent a year from $30.3 billion in 2007 to $38.4 billion in 2012.
Gambling revenue in Canada is seen rising to $6.2 billion from $4.6 billion, while in Latin America, revenues are expected to climb to $514 million from $297 million.
The report said revenue from U.S. tribal casinos would increase to $33 billion in 2012, up 4.5 percent per year from $26.5 billion in 2007.
Regional U.S. casinos outside of Nevada and Atlantic City, not including tribal casinos, were seen gaining 5.3 percent a year to $20.6 billion, while global sports betting was seen rising 7 percent per year to $7.6 billion in 2012.
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