The economic recession has hit the gambling market really hard, as many former casino patrons have decided to be more cautious with their spending. As a result, gambling capitals like Las Vegas and Atlantic City are experiencing significant losses. What does this mean for the international gambling industry?
Losses in Las Vegas
This week, it was revealed that casinos across Nevada lost $1.35 billion over the course of 2013. It was the fifth year in a row that the state and its gambling capital of Las Vegas failed to make a gambling profit.
The last time a profit was made was in 2008 before the economic downturn began, when casinos earned over $700 million in profits.
While it may not seem like it, a loss of $1.35 billion is actually an improvement upon the previous year. Across the state, casinos earned $23 billion which is a $99 million increase from 2012. It is not a huge upsurge but it could mark the beginning of recovery for the American gambling market.
Meanwhile in Macau…
…the gambling market is thriving! If all you had to go on was the performance of casinos in Macau, you would not even know there was worldwide recession. In 2013, the city’s 33 casinos earned $50 billion, an 18% increase from 2012 gambling revenue.
To illustrate just how successful Macau casinos are, December 2013 saw the city’s casinos bring in $4.7 billion. As a contrast, Las Vegas hotels earned $5.8 billion over the entire course of 2013.
Macau is set to outperform Las Vegas yet again in 2014, but there is a chance that the City of Sin will begin to catch up this year.
Other International Gambling Capitals
Towards the end of 2013, Las Vegas Sands’ plans to build a Las Vegas-style gambling capital fell through. So, it does not look like EuroVegas will be built anytime soon.
At the moment, there isn’t a European equivalent to Macau or Las Vegas, but local gamblers will have to keep dreaming for the time being.
Japan could present a great opportunity for gaming operators in coming years. The country is considering licensing integrated casino resorts. With the wealth gaming technology in Japan, we could see the country becoming a high-tech gambling capital.
Casino operators are also considering investing in Sri Lanka, where local politicians are considering the possibility of legalizing casino gambling.
