The global gambling industry has suffered its fair share of pain in 2008 and 2009 as the “credit crunch” and the recession hit the market and lowered consumers’ entertainment spending. 2008 and 2009 served to comprehensively disprove the theory that gambling is somehow recession proof. In research for the 5th edition of its Global Gambling Report, Global Betting and Gaming Consultants (GBGC) has calculated that Gross Gaming Yield (GGY) for the total gambling industry worldwide fell by 3% in 2009 and stood at US$370.4 billion.

Some markets, however, seemed to come through the recession without any apparent trouble. Italy saw its total gambling market turnover pass €50bn in 2009, up 13% on the previous year. This continued a strong trend since Italy began liberalising its market in the early part of the decade. Tax revenues from gaming in Italy reached almost €9bn in 2009, rising from €6.2bn in 2005.

China’s Welfare and Sports Lottery sales rose by 5% in 2008 and by a further 25% in 2009. The growth has been helped by the introduction of new products, especially instant games themed around the Beijing Olympics of 2008. The Welfare and Sports Lotteries are introducing new products with better payouts for customers and tentative forays into sports betting-style games. As such, growth should continue in this sector over the next few years.

Macau SAR recorded 31% growth in casino revenues in 2008. The market had a tougher time in 2009 when growth slowed to 9.7%. But when compared to other markets, particularly Nevada’s 14% decline, this was a good performance.

GBGC forecasts that global GGY will fall fractionally again in 2010 before the recovery begins in 2011. In its latest Global Gambling Report, GBGC forecasts that the global gambling revenues will break through US$400bn by 2012. Asia will continue to be an important region for the global gambling market in the coming years. The first of Singapore’s two casinos – Resorts World Sentosa – has already opened for business in 2010 and the Marina Bay Sands is not far behind.

Singapore hopes to use the resorts to boost its tourist numbers. In 2009 there were 9.7 million tourism-related arrivals to Singapore (2008: 10.1 million) and it is hoped that the new resorts will increase this figure to 17 million. The resorts could help contribute an additional 1.5% to Singapore’s GDP in the first full year of operation.

In the Philippines, PAGCOR is working on the vast Manila Bay complex, which it fully intends will rival Singapore and Macau as a place to visit. The development will include a number of separate casinos run by different firms, including Aruze and Travellers (a joint venture between Star Cruises and Alliance Global).

Cambodia is also another interesting market in the Asian region and has just seen the opening of what its operator claims is the largest casino in the country – the Titan King Casino in Bavet. Warwick Bartlett, GBGC’s Chief Executive, explained: “The opportunities in new markets should help expand the market when they become operational. The continued rise of Internet gambling will also contribute to the global gambling growth and mean it will account for almost 10% of all gambling by 2012. These factors, combined with the anticipated recovering in other existing markets will see the global market’s revenues break through US$400bn by 2012.” (E-04.26.10)

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