Gaming revenues in the 12 US states with commercial casinos have fallen significantly so far this year, according to Frank Fahrenkopf, Jnr, chief executive officer of the American Gaming Association.
During the first nine months of 2008, gaming revenues fell by 2.5 per cent, with the industry experiencing a 4.6 per cent reduction in revenues in the third quarter.
Fahrenkopf explains that lower consumer spending and problems within the credit markets have impacted on casino operators, some of which have cut back on their own expenditure. This, he said, also affects small companies that serve the casino industry.
"There is no way to discuss the gaming industry without looking at the current state of the economy," commented Fahrenkopf.
He argued that unless there is greater liquidity within the credit markets the casino industry will continue to experience difficulty.
"Let’s not kid ourselves, this is not going to clear up tomorrow," he said. "Most of the experts are saying this will last well into next year."
However, Fahrenkopf noted a number of positive developments for the industry, such as the expansion of gaming in several states, and suggested that some may seek to tackle budget shortfalls through gaming.
