The combination of internet-based technology, the economy and political debate is “reshaping” the gaming industry, it has been claimed.
Compiling its list of the top 21 trends for the global casino industry to monitor in 2012, Spectrum Gaming Group identified changes in the political landscape, the emergence of new technologies and the continuing economic downturn as key influencing factors.
"The three-way collision of internet-based technology, a soft economy and politics is reshaping the gaming industry as never before," said Michael Pollock, managing director of Spectrum Gaming Group. Several trends included in last year’s list, such as internet gaming and the industry’s impressive growth in Asia, feature again.
The company’s full list is:
1. Atlantic City: With considerable state muscle and funding and the spring opening of Revel, Atlantic City will begin to rebound from its five-year slide, although this will lead to further erosion of revenue and financial instability for weaker operators.
2. Development: New casino development will emphasise sensible, mid-scale size and design as gaming companies emphasise return on invested capital in a soft economy.
3. International: Development plans for the Primorye Gaming Zone in Russia, near the eastern port of Vladivostok, will come into focus, revealing its potential to become a prominent Asian gaming centre.
4. International: Major US gaming operators will continue to scout Asia and other, underserved international markets to develop major gaming resorts.
5. Internet: Land-based US casino companies will continue preparations to immediately capitalise on the eventual legalisation of internet poker.
6. Internet: Offshore operators, particularly those who have never taken bets from American gamblers, will sign even more deals with US land-based operators in preparation for eventual legalisation of online wagering.
7. Internet: Social networking and electronic gaming will make further, behind-the-scenes steps toward a convergence that could, at some point, be the "next big thing" in gaming.
8. Internet: Sweepstakes convenience gambling in storefront cyber cafes will continue to grow and negatively impact commercial casino revenue unless state and local governments enact stronger restraining legislation.
9. Las Vegas: Intense competition accelerates in Las Vegas locals market as local employment and housing markets remain weak.
10. Las Vegas: Las Vegas convention business continues its upswing, boosting midweek room rates and improving overall property margins.
11. Las Vegas: Las Vegas Strip operators focus on debt restructuring and property enhancements rather than new development and consolidation.
12. Lottery: More lotteries will face pressure to privatise or bring in private management, as they simultaneously move toward a greater online presence
13. Lottery: The convergence of traditional gaming and state lotteries will accelerate, in large part due to the prospect of internet gaming.
14. Markets: Gaming operators will exert pressure to lower tax rates in high-tax markets to better compete against neighboring states.
15. Markets: Legalisation efforts will continue in long time casino-reluctant US states such as Kentucky, New Hampshire and Texas, as those states seek additional revenue streams while trying to stem the flight of gambling dollars across state lines.
16. Markets: Major US states where casino gaming is limited will continue to pursue expansion opportunities, such as in Florida, Illinois and New York.
17. Markets: Regional casino competition will continue to increase in both California and the north-east as racinos, slot parlours and Native American casinos expand and add new upscale amenities, placing added pressure on the destination resort cities of Las Vegas and Atlantic City.
18. Native American: Expect the argument about opening up the Indian Gaming Regulatory Act for internet gaming purposes to get louder. Native American casinos, meanwhile, will dip their toes into internet gaming with free-play poker sites.
19. Operations: Server-based gaming will continue to make only small steps as slot managers maintain their wait-and-see approach to the return on investment for such a system.
20. Sports betting: The US Department of Justice will be pressed to defend the constitutionality of PASPA legislation allowing only four states to practise sports betting in the face of state challenges.
21. Technology: The US economy will continue to struggle and unemployment levels will remain high through at least the next year, forcing US casino operators to continue to implement automated technologies and find operating efficiencies. This will lead to further reductions and restructuring of employment and payroll levels for casino operators.
