www.CasinoReview-Online.com • January 2011 • 099


Hidden Treasure: Troia set for NY opening


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Levelling out points to 2011 recovery


There was only one main question on the lips of attendees, delegates and exhibitors at this year’s Global Gaming Expo held November 16-18 in Las Vegas; just when will the recession relinquish its two-year grip on the US casino industry? Respondents to a survey on the health of the sector believe recovery will take much longer than they previously hoped but there are signs it might be loosening. Phil Martin reports.


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Industry experts at Price Waterhouse Coopers believe a recovery for Las Vegas’ casinos is just around the corner, earmarking the last quarter of 2011 as being the time when the long awaited green shoots will begin to flourish.


Whilst opinion was split


from the exhibition floor and conference halls at the 2010 edition of the Global Gaming Expo, industry analysts at PwC believe that Nevada rev- enues will decline by 2.9 per cent for 2010 as a whole, with a recovery beginning in late 2011 and mid-single digit gains projected for 2012 to 2014. Frank Fahrenkopf, chief


executive of the American Gaming Association, revealed a leveling out of earnings in his address at the Las Vegas exhibition point- ing to an increase in Gross Gaming Revenues in com-


mercial US casinos of 1.3 per cent in the third quarter to just over US$8bn. There is, of course, as


always a spin. Whilst this increase equates to a US$100m increase in casino earnings compared to the same period last year, several states have dramatically increased their gambling offering over the year. This might have led to five states recording increases in GGR ,but states such as Pennsylva- nia, where table games were introduced this year sending GGR up by 27 per cent in the third quarter, have eaten into the profits of others; most notably Atlantic City, where GGR has been savaged and has dropped for 26 consecu- tive months.


“I hope this is the begin- ning of things bottoming out and looking up,” Fahrenkopf said in his address. “We’re still dealing with depressed con- sumer confidence. The outlook is decidedly mixed. The impact of the recession


Cancun hits the Playboy jackpot


Model Carmen Electra welcomes the Playboy bunnies to Cancun where Mexican slot operator Palmas group has hit the jackpot by launching South America’s first Playboy club. The gaming group has teamed up with Playboy Enterprises to offer not just the first Playboy club in the region but also the first fully fledged casino with roulette, poker, Caribbean poker and blackjack tables along- side slot machines and a sports book. FULL STORY PAGE3


Playboy Ahoy: Macau warms to US casino club


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Conventional Thinking: G2e says bye to LV Convention Centre


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has been deeper and the recovery slower than nearly everyone predicted. Con- sumer discretionary spend- ing has been significantly depressed throughout most of the year, which means that the gaming industry, and others like it, have continued to struggle. The slot compa- nies are all asking if casinos are ready to refresh their floors and buy new games. That’s what we’re waiting to see.”


Mary Lynn Palenik, direc- tor of gaming practice at PwC


US, believes that improved economic conditions will trigger a recovery in US gaming revenues in late 2011, although 2007 gaming revenue levels will not return until 2012.


“The gaming industry is


facing an evolution, which presents both challenges and opportunities for the indus- try’s established players and those considering entering the market,” she said. “The explosion of entertainment choices for consumers will make it vital for the industry


to produce an offering and experience that consumers want to spend money on.” PwC is predicting that US gaming revenues will increase to $68.3bn in 2014 from $57.2bn in 2009, a 3.6 per cent compound annual increase. Eric Tom, chief operating


officer of International Game Technology, said: “Everybody would love it to be back to where it was in 2007. But no one is sure when the players are going to come back and start spending more. At some


point in the next three or four quarters, somebody’s going to want to take that first mover advantage, and then everything cascades from there.” Former IGT chairman


Chuck Mathewson added: “It’s going to be a long recov- ery, and we’re starting to see some traction. The industry won’t be as robust as it was but it will recover. We just need to continue to provide the entertainment options that people want.” CONTINUED ON PAGE 3


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