2010 til US Gaming Industry Pick Up
17th December, 2008
A report yesterday by Business Wire said that after probably the most difficult year financially in recent history, it was unlikely that the US Gaming Industry would recover until 2010, predicting a sustained amount of pressure for the industry through 2009.
According to Fitch Ratings the global economy is experiencing a severe recession, the steepest GDP decline in the most advanced economies since WWII will be witnessed.
With consumer confidence being undermined by weak employment trends and depressed real estate, it is expected that the financial profile of the US consumer will remain stressed throughout 2009.
Fitch in the Outlook of 2008 implied that it assumed the gaming industry to be more economically sensitive than in previous downturns, something clear for all to see this past year.
Many investors did not expect the gaming industry to experience such an impact as it has from the difficult financial conditions consumers have suffered this year. Generally, gaming spend per visit has been affected more than visitation levels themselves, which can and have been strengthened by promotions.
Fitch also believes that due to external factors like the reduction in airline capacity, it is likely local markets will fare better than destination markets, such as the Las Vegas Strip.
By Rommon
