Macau may be immune to the effects of the global slowdown, so far, but other places are not so lucky. Following higher than average unemployment figures and other less than encouraging economic news, the Nevada Governor faces a state revenue budget shortfall that is now expected to exceed US$800 million by mid-2009. Other states across the US also have to come to terms with projected revenue shortfalls. The rise in fuel and food prices and the falling housing market are dispelling the myth that gambling is recession proof as casinos find visitor numbers declining.

The Las Vegas Review-Journal reports that one company, Cash Systems, has been badly hit by bouncing gamblers’ cheques - to the tune of US$4.1 million in the last quarter of 2007. Receiving a fee for handling ATM withdrawals, cash advances on credit cards and cheque cashing at many US casinos, the company is responsible for the bad cheques. With credit card defaults increasing and consumer spending weakening, Cash Systems has seen its share price tumble from US$7.46 last July to just 57 cents at the end of last week.

The Illinois Gaming Board is to consider a request from several casinos in the state to remain open round the clock. A public hearing will be held 8 April and the Board is likely to announce its decision at its 22 April meeting. A fall of nearly 18% in gambling revenue for January has prompted the request for longer hours. In February revenues fell 13%, attributed to a slowing economy, a smoking ban and bad weather.

In January it was reported that 12 out of 19 gambling states surveyed had seen a fall in gross gambling revenue from the previous year. Companies in the gambling industry have already started to cut convention attendance and travel for employees. There is also growing uncertainty over some smaller casino projects previously expected to go ahead. The sinking dollar may bring more foreign visitors to places like Las Vegas but with fuel prices hitting the pockets of the average US gambler, many states reliant on gambling tax dollars may have to tighten their belts. (E-03.31.08)

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