Inside Asian Gaming

inside asian gaming June 2014 22 US Casino Growth: A Mixed Bag Nationwide revenue rose marginally and set a record in 2013 as new states legalized or expanded gaming, but existing operators have been hurt by the increased competition A recently released report on the US gaming industry from accounting and business consulting firm RubinBrown LLP shows commercial and tribal casinos generated a record US$66.3 billion in revenues in 2013, up 1.6% from the $65.24 billion the industry produced in 2012. The RubinBrown report, “Commercial and Tribal Gaming Stats 2014,” pools data from over 1,000 commercial and tribal casinos in 39 states with legalized gambling. The data utilized within the report was obtained from the National Indian Gaming Commission (NIGC) and the various state gaming regulatory authorities. The report was compiled and written by RubinBrown’s National Gaming Services Group Leaders—Daniel Holmes and Brandon Loeschner. According to the report’s authors, the gaming industry has welcomed a steady increase in revenue over the past four years following the recession. Revenue growth has largely been attributed to market expansion, as states continue to legalize gaming and more tribes enter the gaming industry. But while the market expansion has increased revenue for the overall gaming industry, existing operators have seen declining revenues from the increased competition, the report said. Commercial gaming expanded 1.3% in 2013, reaching $37.83 billion, in part because six states with commercial gaming operations built new or expanded existing gaming facilities this past year. Las Vegas experienced a small increase in revenue in 2013, hitting nearly $6.51 billion and remaining the top US commercial gaming market. In addition, the state of Nevada dominated the country, generating $11.14 billion in commercial gaming revenue. Atlantic City again held the second top market spot; however, revenue slightly decreased in 2013 to $2.93 billion, while the entire state of New Jersey experienced a 3.7% decline in revenue. Feature The state of Ohio had the largest increase in gaming revenue at 149.1%, generating $1.07 billion, as the market benefited from the opening of three new “slot-only” racinos, one new full-service casino in 2013, and having 12 full months of operation for the existing casinos. Pictured above is the Miami Valley Gaming racino in Lebanon, Ohio, which opened 12th December 2013.