Gambling Industry Profile

Companies in this industry operate gambling facilities or offer gaming activities, including casinos, casino resorts and hotels, bingo halls, lotteries, and off-track betting. Major companies include US-based casino operators Caesars Entertainment, Las Vegas Sands, and MGM Resorts, as well as Lottomatica (Italy), SJM Holdings (Hong Kong), Tatts Group (Australia), and William Hill (UK).

Worldwide, gambling generates more than $400 billion in revenue, according to Global Betting & Gaming Consultants (GBGC). Major casino gaming markets include Australia, Canada, France, Macau, and the US. Driven by strong demand in Asia, worldwide gaming revenue could grow to $500 billion by 2014.

The US gambling, or gaming, industry consists of about 500 casinos, about 400 Indian casinos and bingo halls, and lotteries in about 40 states with combined annual revenue of about $80 billion. Modest growth is forecast for the next two years. Key demand drivers include disposable personal income and the introduction of new games.

COMPETITIVE LANDSCAPE

Demand for gambling is driven by consumer income growth and state spending. The profitability of individual companies depends on efficient operations and effective marketing. Large operators have the financial resources to make significant investments in facilities and efficient computer operations; they may also enjoy cross-marketing opportunities. Small gambling facilities can thrive by catering to local residents, who may not be able to afford travel to such gambling centers as Las Vegas or Atlantic City. The industry ...