New analysis by PwC looking at the casino and online gaming market, forecasts that 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 during 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 and we will see 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 to become the largest regional market for casino gaming in the world.
David Trunkfield, lead gaming partner at PwC, commenting on the casino market in EMEA, said: “The casino gaming market in EMEA has been the hardest hit of any region by the economic downturn, with revenues slumping by 12 per cent in 2009, followed by a further 7.2 per cent in 2010, the third consecutive annual decline. We expect that 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 will curtail growth.”
The UK
The UK was one of the few countries to post an increase in revenues in 2010, with 0.6 per cent advance. Several countries have substantial gaming activity that occurs outside of casinos. In the UK, gaming machines generated more than US $3 billion in total revenues in 2010. The casino market, however, totaled only US US $1.2 billion.
David Trunkfield, lead gaming partner at PwC, said: “Looking ahead, growth in the UK over the period should also be supported by the opening of the eight large, and eight small, new casinos
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permitted under the 2005 Act, which we expect will help to generate gains averaging 4.1 per cent compounded annually between 2012 and 2015. However, with the current pressures on UK consumer spending, we forecast a decrease in casino revenue in 2011 and a modest 0.6 per cent advance in 2012.”
Asia Pacific – the growth engine
Asia Pacific will see strong growth during PwC’s forecast period with Macau being the jewel in the gaming crown. This growth will be driven by three main factors: continuing economic growth, which will increase disposable income, and the emergence of a prosperous middle-class in China; 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.
David Trunkfield, lead gaming partner at PwC, said: “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 billion in 2011 and a predicted US $7 billion by 2015. The improvement in transport links to key casino gaming markets, such as Macau, and the easing of regulations is also contributing to the increase in revenues.” (E-12.06.11)
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