US regional gaming will continue to struggle – Fitch
US gaming revenues outside of Nevada will remain challenging according to ratings agency Fitch.
They cited market saturation, stagnant wages among lower-tier players and reprioritisation of disposable income.
The pessimistic forecast comes after news that four of Atlantic City’s twelve casinos have announced plans to close if they can’t find buyers.
Fitch highlighted social gaming as a negative for casinos: “Spending on social games, along with lotteries and other low-cost, convenient alternatives, eats into the customers’ casino and other recreational budgets.”
The agency suggested that low interest rates on pensions meant that ‘baby-boomers’ were less likely to visit casinos.
Fitch also predicted that slot revenues will continue to decline from 85% of total gaming revenue to 75% by 2030.
“The shift largely reflects the younger generations’ preference for table games,” the report said.
The agency also identified Isle of Capri Casinos, which operates 15 casinos in seven states, as the operator most vulnerable to decline.
Earlier in July, rating agency Moody’s downgraded its outlook on the US regional casino industry from stable to negative.
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