WORLD GAMBLING REVENUES WILL REACH $144 BILLION BY 2011

22 June 2007

International audit group's survey shows average growth path of 7.2 percent

A survey by internationally respected audit group PricewaterhouseCoopers predicts that global gambling revenue is estimated to hit $144 billion in 2011 after growing at an annually compounded rate of 7.2 percent a year, WTOPS News reports.

Legal casino and online gambling revenue in the region encompassing Europe, the Middle East and Africa is expected to rise 1.9 percent a year to $27.8 billion from $25.2 billion. Gambling revenue in Canada is seen rising to $5.9 billion from $4 billion, while in Latin America, revenues are expected to climb to $495 million from $278 million.

Strict regulations banning the transfer of funds between gambling sites and U.S. residents are expected to have an adverse affect on U.K.-based online operators, while a mix of sports betting restrictions and new licenses will hurt sports betting in Europe overall, the report opined.

Gambling revenue is expected to rise from $101.6 billion in 2006, driven by new casinos and upgrades of existing casinos in all regions of the world, the report revealed.

Revenue in the United States is expected to grow 6.7 percent a year to $79.6 billion from $57.5 billion, while in the Asia Pacific region it is forecast to grow 15.7 percent annually to $30.3 billion from $14.6 billion, becoming the world's second largest casino market.

Within the United States, Nevada revenues are projected to grow 7.5 percent a year to $18.2 billion, but Atlantic City, N.J., revenues are forecast to slip 0.1 percent a year to $5.2 billion.

While new projects in Las Vegas are seen driving Nevada growth, the report said New Jersey's gambling hub would be hurt by the availability of slot machines in nearby Pennsylvania.

U.S. tribal casinos were seen generating $36.5 billion in 2011, up 7.6 percent per year from $25.3 billion in 2006. Regional U.S. casinos outside of Nevada and Atlantic City and not including tribal casinos were seen gaining 6.6 percent a year to $19.5 billion, while sports betting was seen rising 5.8 percent per year to $255 million.

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