US gambling slowdown?

[jetset]

U.S. GAMBLING SLOWDOWN?

Economic conditions could add to the burden of UIGEA

Despite political and law enforcement attempts to derail the US online gambling market, it remains a major contributor to Internet gambling revenues and therefore a new report on US gambling will be read with interest by industry observers.

The report, by New York-based Moody's Investors Service claims that several factors are combining with the "economic slowdown and possibility of a long-term, consumer-based recession" to negatively impact the overall US gambling industry.

"Declining disposable income of potential customers and increasing travel costs are lowering overall visits and spending per visit in many gaming markets," said the report's author, Keith Foley, Moody's vice president and senior credit officer.

On a more positive note, the report concludes that longer-term fundamentals of the land casino industry remain favourable: an increase in the industry's key demographic base of 45- to 65-year-old customers, major challenges to competitors trying to enter the industry, and rapid advances in gaming technology.

The report's release was made on Good Friday, a day when the New York Stock Exchange and other financial markets are closed for Easter weekend, but was the findings were acknowledged by gambling group spokesmen as a short-term challenge, although longer-term fundamentals remain favourable.

In February 2008, MGM Mirage, Harrah's Entertainment and Station Casinos together with several smaller local gaming companies acknowledged that the current economic downturn has forced staff reductions and loss of hours at some properties. However, none of the companies has given hard numbers on the number of employees effected.

"As in other consumer-based leisure industries like lodging and cruises, a decline in disposable income ... combined with an increase in the cost of travel results in lower overall visitation and spending per visit," Foley wrote in the report.

The slowing economy comes while gaming companies throughout the country are dealing with various challenges, such as increasing competition and smoking bans.

Several states reported gaming revenue declines in January, including 4.7 percent in Nevada, 10 percent in New Jersey, 17 percent in Illinois, 8 percent in Indiana and less than 2 percent in Louisiana, Missouri and Iowa.

"The amount and type of competition, along with the amount of capital investment needed to compete effectively, have increased substantially since 2001," Moody's Foley wrote.

The various challenges may have a benefit for consumers as the economic slowdown leads "to further increases in promotional activity across most major markets as gaming operators compete more aggressively to maintain visitation and market share."

[RobWin]

I'm really surprised that there was no mention of Mississippi in their report as there are around five or six seperate destinations there and two rather large ones being the Tunica area and the Biloxi/Gulf Coast region....

[NASHVEGAS]

I do not think Barney Frank has alot of time with his position to worry about UIGEA....he is kinda busy working on many issues like the the credit crunch/crises,subprime and mortgage securities gone bad, and a potential collapse of the whole entire banking system with a potential government bailout. By the same token, not sure The Fed has time to complete a final enforceable version of the UIGEA law as originally was to occur by the first week in July 2007 iirc so there is really no final version of the UIGEA law as it stands now. May just get lost now anyway with the big economic mess on the government's plate. Yet the DOJ decided long ago and makes sure to keep mentioning that online gambling is illegal of and beyond the Wire Act. The DOJ continues to make there own rules and laws. I know as I recently discussed an ongoing 18 year old lawsuit with no end in sight that I have been involved in as a plaintiff Shareholder of a wrongfully seized Savings and Loan regarding supervisory goodwill. We won the case at the Supreme Court level in 1996 btw. More info available if anyone besides RW is interested in the on going rogue battle against the DOJ.

[babs7262]

Atlantic City is hurting big time! I am getting cards from places Ive never gotten from before. PLUS..I am getting cards from Vegas now too. I havnt been to vegas since 2004. Rich and I have noticed when we go to AC, it is less busy and they are offering more stuff.

I personally think it ahs to do with the new PA casinos because those busses were busy going back and forth from PA to NJ and when we go, there arnt as many busses on the road either.

There are the same amount of NewYorkers and Asians though. I think there are more of those than PA and NJ people lol. Those guys from Brooklyn crack me up! Deb? you ever see them at craps and black jack with their gold chains and leather coats and their girls are all dressed up like the old days of Sinatra! God, I love AC!