Internatonal Factors May Slow Down Gambling Growth

By Brian Cullingworth, Last updated Nov 30, 2018

Fitch Ratings study lists threats as a slowdown of the Chinese economy, tougher European regulations and the tapering of recovery in Las Vegas

Global growth in gambling in general is likely to decelerate next year due to threats posed by a slowdown of the Chinese economy, tougher European regulations and the tapering of recovery in Las Vegas, according to an independent study by Fitch Ratings.

However, the company retains an optimistic long-term view based in part on China’s burgeoning middle class which it is regarded as under-exploited at present and has particular potential in the Macau market, where major land operators have continued to invest.

The study concluded that mass will continue to drive growth in 2019, as the VIP demographic is more sensitive to the economic and credit conditions on mainland China.

“We expect VIP weakness to carry into early 2019 and the full-year 2019 to be about flat, offset by a stable mass market,” the Fitch researchers report. “We expect Chinese-related VIP weakness to spill over into other markets including Singapore and Las Vegas Strip.”

Fundamentals for the Malaysian gaming market remain stable, underpinned by a domestic mass-market focus at Resorts World Genting, while Australian operators will continue to benefit from resilient underlying domestic demand and a favorable regulatory environment.

Brian Cullingworth

Infopowa news was a staple of Casinomeister’s news from 2000 until 2019. Brian Cullingworth was the main writer, contributor, and was one of the most knowledgeable persons I have ever known involved in the online casino industry.

We first met in January 2001 at the ICE in London where I observed him going booth to booth interviewing online casino, software, and licensing jurisdiction representatives. Brian was also heavily involved with our forum as “Jetset“, he was involved as an informal consultant to eCOGRA, the OPA, and was a player advocate who assisted countless aggrieved players with his connections to industry folks. He also published “Casino Cautions” via Infopowa news for quite a number of years. These can be found in our news archives.

His passing in February 2019 was a dark day for us. He will be forever missed.

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