Fall 2015 Issue of Horizons

GAMING

Growth Continues as Theme for 2015 by Daniel Holmes, CPA, CIA, CGMA

G rowth in gaming continues at an impressive rate through the first six months of 2015. During this period, the U.S. commercial gaming industry generated $19.18 billion, a 2.7% increase over the same six-month period in 2014. Of the 24 states that offer commercial gaming (Massachusetts became the 24th state with the opening of Hollywood Plainridge Park Casino on June 24, 2015), 19 states experienced revenue increases in the first six months of 2015. In comparison, during the same period in 2014, only 6 states experienced increased revenues. While the revenue growth seen earlier this year was attributed to a milder

winter, the continued growth is indicative of improving economic conditions. During the second quarter alone, the commercial gaming industry generated $9.65 billion in gaming revenue, a 2.4% increase over the second quarter of 2014. This growth followed an already strong first quarter performance, where the gaming industry grew at a rate of 3.0%. While the growth seen in Q2 2015 was less than the overall growth rate experienced in Q1 2015, there were two notable deviations in the data that suggest the growth trends will continue for the remainder of the year. First, the largest revenue producing month during the first six months of 2015 was May instead of March. In May 2015, the U.S. gaming industry generated $3.43 billion,

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