By Staff & wire reports
Global gambling revenue is estimated to hit $144 billion in 2011 after growing at an annually compounded rate of 7.2 percent a year, according to a PricewaterhouseCoopers LLP report released last week.
Gambling revenue is expected to rise from $101.6 billion in 2006, driven by new casinos and upgrades of existing casinos in all regions of the world, the report said.
In Nevada, gaming revenue is projected to increase at an average 7.5 percent over the next five years, reaching an estimated $18.2 billion in 2011.
This year, the study projected an 11.6 percent increase, followed by a 9.6 percent increase in 2008, fueled by the opening later this year of the 3,000-room Palazzo next to the Venetian, and the 2,000-room Encore next to Wynn Las Vegas next year.
An additional 10,000 hotel rooms will hit the Strip when MGM’s CityCenter opens in 2009, and Boyd Gaming’s Echelon Place in 2010.
In New Jersey, because of increasing competition from nearby venues, Atlantic City revenues are forecast to slip 0.1 percent a year to $5.2 billion.
And, while new projects in Las Vegas are expected to drive Nevada growth, the report said New Jersey’s gambling hub would be hurt by the availability of slot machines in nearby Pennsylvania.
U.S. tribal casinos were seen generating $36.5 billion in 2011, up 7.6 percent per year from $25.3 billion in 2006.
Revenue in the rest of the country is expected to grow 6.7 percent a year to $79.6 billion from $57.5 billion, while in the Asia Pacific region it is forecast to grow 15.7 percent annually to $30.3 billion from $14.6 billion, becoming the world’s second largest casino market.
Legal casino and online gambling revenue in the region encompassing Europe, the Middle East and Africa is expected to rise 1.9 percent a year to $27.8 billion from $25.2 billion.
Gambling revenue in Canada is seen rising to $5.9 billion from $4 billion, while in Latin America, revenues are expected to climb to $495 million from $278 million.
Strict regulations banning the transfer of funds between Internet gambling sites and U.S. residents are expected to have an adverse affect on U.K.-based online operators, while a mix of sports betting restrictions and new licenses will hurt sports betting in Europe overall, the report said.