‘New Planet’ For Global Gaming in 2015

Michelle Remo, “Big 4″ observer
December 05, 2011 /

A new report released by the global business consulting and accounting firm PricewaterhouseCoopers has outlined the changes and challenges in mature markets, the upcoming opportunities in new and developing jurisdictions, as well as the legislation, regulation, and potential impacts brewing in the online gaming arena.

Casino gaming through to 2015

According to PwC’s projections, the global casino gaming revenue across the United States, EMEA (Europe, Middle East and Africa), Asia Pacific, Latin America and Canada will grow at 9.2 per cent compound annual rate in the next five years, rising from US$117.6 billion in 2010 to US$182.8 billion in 2015.

Spending in the US will rise by 5.0 per cent from US$57.5 billion in 2010 to US$73.3 billion in 2015, according to the report “Global Gaming Outlook: The casino and online gaming market to 2015″. However, the accounting firm sees dramatic growth in Asia Pacific with a projected 18.3 per cent increase compounded annually to US$79.3 billion in 2015, overtaking the US in 2013 to become the largest region for casino gaming in the world.

Revenues in EMEA will reach US$18.3 billion in 2015 up from US$16.3 billion in 2010, an average annual increase of 2.4 per cent compounded annually.

The weak economic conditions and the impact of adverse regulatory developments in some countries are said to curtail growth. The much smaller Latin American market will see growth of 8.1 per cent compounded annually from US$3.8 billion in 2010 rising to US$5.6 billion in 2015. Canada will grow from US$5.7 billion in 2010 to US$6.2 billion in 2015, a 1.8 per cent compound annual rate.

Asia Pacific – the growth engine

As projected by PwC, Asia Pacific will see aggressive growth, with Macau being the “jewel” in the gaming crown, driven by continuing economic growth which will increase disposable income and the emergence of a prosperous middle-class; a deep attachment to casino gaming and other forms of gambling in many of the societies in the region; and the growing opportunities for consumers to take part in casino gaming as new centres are established and new facilities open up in existing markets.

Singapore’s dramatic emergence as a casino gaming centre is a prime example of new territories entering the market. Revenues have surged from zero in 2009, to US$4.4 billion in 2011 and a predicted US$7.2 billion by 2015.

The improvement in transport links to key casino gaming markets and the easing of regulations is also contributing to the increase in revenues, PwC said.

The Philippines already has a stable casino gaming market and new casinos in that country will propel growth, it added. If regulatory approval is given in Japan, it’s likely that integrated casino resorts will be built in three locations.

As the Asia Pacific region continues to flourish and offer a more local gaming experience for Asian gamers, some high roller customers that would otherwise travel to the US will be diverted by these overseas attractions. The impact will be on US gaming centres, like Nevada, which have a higher reliance on foreign tourists to drive revenues.

2015 and beyond

PwC said that by 2015 the financial balance of power in the global casino gaming industry will have undergone a fundamental shift to the east with Asia Pacific having overtaken the US in 2013 as the biggest regional market in terms of revenues.

This change will be accompanied by a dramatic evolution in several aspects of the industry as online gaming becomes an increasingly regulated mainstream activity with revenues and usage taking off in many markets.


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