A Time of Adjustment Oops! That huge noise is the sound of the gaming balloon that has been expanding throughout the years, gradually going down in air. However, it hasn't been a tidal wave that has sunk all boats, though certain emerging and expanding gaming areas saw strong growth in the year 2008. Overall the racetrack and the commercial casinos (excluding Indian gaming), have experienced the 3.5 percent drop in gaming revenue in 2008, with the sum of $36.2 billion, which was down by $800 million from the 2007. The Racino industry that mitigated nhà cái khuyến mãi this decline, since they saw a rise of nearly one billion dollars during 2008 increasing the market for commercial sector decrease to $1.8 billion and 6.7 percent. Nevada was the most sluggish losser in 2008, losing nearly $1.3 billion, which was more than half of it stemming directly from that Las Vegas Strip segment. Snuggling in In the majority of cases, casinos were in the dark by the decline in revenue for 2008, because it was only during the 3rd and 4th quarters that it truly sank. As the year rolled by, with annual market growth across the nation and the abundance of equity and credit funds New construction and expansions exploded in the past few years. Now, by the reality of declining or at the very least slowing demand, a lot construction projects in the United States are being deemed to be over-leveraged or over-sized. In the wake of this, many gaming companies are trying to negotiate a new deal with their debts which is made more difficult due to low valuations, while trimming operational costs. This has created an extremely difficult problem when it comes to competitive landscape, particularly in areas that are competing for market share with casinos that are emerging in adjacent regions. This is a subject we will discuss more extensively in the Analysis section of State by State in this book. Due to these circumstances, the gaming is now littered with imminent deaths. The most prominent companies that are in trouble include Station Casinos, Empire Resorts, Harrah's Entertainment, Greektown Holdings, Legends Gaming, Tropicana Entertainment, Herbst Gaming; and the list is growing every week. "How long will these economic conditions persist, and are we at the bottom yet?" These are the questions that no one seems to have a solution for. The one thing that is certain is that the majority of gaming authorities will need to come up with a way to manage the smaller portion of the pie. Note: This analysis only covers gaming revenues from licensed casinos and parimutuel venues that provide casino games but not Indian casinos, gaming establishments or cards or smaller slot places. The entire article, which includes revenue tables, is accessible on our website. Model for Input/Output A major aspect that appears to have emerged from the devastation of this present trend is that the majority of casinos were simply too big to be able to sustain them. In terms of dollars invested, wasn't proportional to output, as measured by net profits following debt servicing, when compared to the previous results. Greater and/or more expansive is not always more effective. The rise in the non-gaming revenues from Las Vegas Strip resorts Las Vegas Strip resorts, spurred the development of more extensive facilities in other countries. The issue with this plan is that the cost of expanding market penetration and the possibility of using are substantially higher than the cost needed to lure the main market. As daytripper markets become increasingly and more competitive, casinos will be forced to rely increasing on hotel guests in-house and expand their property (and expectations) according to. Even though Steve Wynn started a major trend of creating mega-destinations that are upmarket however, there was not enough demand for the Strip to justify the multitude of other similar projects which targeted the same market. It is important to find the right balance between the configuration of projects. This will naturally need a less'seat-of-pants approach, but an approach that's more researched. A shameless plug for development consultants like ourselves. Other Gaming Activities Although there isn't any published specific figures on American Indian gaming revenues, reports from the field suggest that this particular segment is as hard-hit as the commercial sector. Two Connecticut Indian gaming installations report slot revenues in the amount of $1.6 billion during 2008 which is an approximate drop of 7 percent or nearly $114 million, nearly double the 3.5 percent decline in the year prior. The market is experiencing the ripple effects of the expansion of casinos in Rhode Island, and the introduction of slot machines across New York and Pennsylvania. The Arizona Department of Gaming reports that the contributions, based on an income formula for gaming from all 23 Indian gaming casinos are decreasing each quarter of 2008 when compared to the prior year. declining .8 percentage in the beginning quarter. 7.5 percentage in the next quarter. 9.5 percentage in the 3rd quarter in the fourth quarter, and 16.1 percent during the final quarter. Certain SEC report Indian gaming facilities have similar declines. Seneca Gaming, which operates three Class III casinos in upstate New York, reports that the calendar year of 2008 saw the growth of nearly 2 percent in gaming revenue but it was reporting an 8.7 percent decrease for the quarter ending March of 2008 and nearly 10 percent decrease during the 4th quarter 2008 when compared to the 2007. Gaming revenue trends in close by Niagara Falls, Ontario were lower by 1.5 percent in 2008, as compared to 2007. There's been mixed results for lottery systems across the country. According to the North American Association of State & Provincial Lotteries declares the U.S. lotteries generated a total of $60.6 billion in sales during fiscal 2008, an increase of 3 percent over the previous year. However, some states saw declines in sales, including California which saw an increase of 8 percent. Because several of these states are at different dates for their fiscal year so it is possible that these numbers do not reflect the effect on the fourth and third quarter results.