Growth of the Global Gaming Industry
The Gaming Industry has grown into a global market and continues to expand. Ernst & Young’s data on the performance of the gaming industry shows that as a whole, it has seen strong revenue growth over the past year.
However, analysts forecast a slowdown in the U.S. gaming industry alongside the slowdown of the overall economy. The U.S. industry has been forced to look beyond their borders to international markets as a result of state laws restricting their expansion potential. There have been various setbacks as well as inventive ways around the issues.
Companies are taking full advantage of both Florida and Pennsylvania, the two markets still open to new entrants in the U.S. gaming industry. As racetrack betting declines in states such as New York, companies are trying to revive these venues by filling them with slot machines and giving them the appearance of commercial casinos.
But the market is not without challenges. One potential restriction is a bill proposed in the U.S. Senate that would put into play additional regulations on the Indian Gaming Industry. At the moment, the Indian Gaming Industry continues to grow by “leaps and bounds.” The Louisiana casino industry is also booming despite the state’s slow recovery from Katrina.
With the $12 billion (gross revenue) online gambling industry largely eliminated in the U.S., companies are looking to exploit new markets in Europe and Asia. Internet poker had experienced extrodinary growth over the past few years, but was terminated with the Unlawful Internet Gambling Enforcement Act, barring the use of electronic payment.
Companies hoping to grow and expand in the gaming industry are looking to markets in China, Singapore, Macau, Spain, the Bahamas, South Africa, India, and possibly even Russia. Macau’s gaming revenue surged 23% in 2006, surpassing the Las Vegas Strip as the world’s biggest casino market.
The complete report can be found here.
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