According to the medium range analysis of the gaming industry, Global Entertainment and Media Outlook study, published by PricewaterhouseCoopers last Wednesday, Latin American regional compounded growth would remain at 12.5% per annum until 2009. One of the major contributing factors for this figure is the recent approval of 17 gaming licences in Chile, a country that has the most stable economy in the region.

The regional projection places Latin America in second place behind the Asia Pacific region, experiencing unparalleled growth right now, as Macau gaming goes from strength to strength with developments by Las Vegas conglomerates. As Singapore prepares to authorize the operation of two integrated gaming resorts, and the Phillipinnes updates its gaming industry, Taiwan, Japan and Thailand begin to show signs of prospective gaming legislation that would bring casinos to these countries. Asian governments, along with the rest of the world, have been watching Macau rake in the gambling dollars. The GEMO study projects US$18.5 billions casino revenue in Macau with compounded growth of 15.9% by 2009.

The American market, however, is the largest market worldwide and with the new development boom kicked off by the Las Vegas Wynn this year, and increased gambling revenues, there are no signs of a slow down. Although yearly compunded growth for American casinos should keep a steady 8% for the period to 2009, this number starts from a high base at US$47.3 billions for 2004. Las Vegas revenue is projected to reach US$15.8 billion in four years, and this would represent nearly 25% of the total for the country of US$64.1 billions by 2009, or 26% growth for the four years.

Growth for American gambling companies does not come from casinos alone. During the past decade gambling resorts have turned to non-gambling activities to generate higher numbers, and operators have turned their properties into full entertainment centres with food, rooms, shows, shopping, spas, etc., hitting bigger combined revenues than gambling. Revenue streams for gambling and non-gambling activities are inextricably joined, and operators in Las Vegas know that non-gambling revenue has been growing at a faster pace lately.

For varying reasons, neither online gambling nor sportbook betting have been included in the report, and there is no indication that the study covers the Russian Federation or the ex Soviet Republic countries. Also, Brazil and Mexico are excluded because gambling is not regulated in those countries. There is no provision or estimate for illegal gambling or gambling under judiciary protection, which would make Latin American regional growth more dynamic and likely to hit higher figures.

Additionally, there is the informal economy factor, accepted as a macroeconomic tool in some countries, which increases GDP and drives growth in some countries in the region. Any which way, gaming is booming worldwide with business opportunities here, there and everywhere. It's all a matter of cutting your cloth. (E-06.24.05)

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