RubinBrown Gaming Stats 2015

UNITED STATES GAMING INDUSTRY OVERVIEW

(Originally published in the March 2015 issue of Casino Journal)

Gaming revenues hit an all-time high in 2014 while the number of casinos declined for the first time in the modern era of gaming. In 2014 the United States gaming industry set a new record for gaming revenues, generating $68.7 billion in revenue, an increase of 0.5% over the previous record set in 2013. For purposes of this analysis, the U.S. gaming industry includes commercial and tribal brick-and-mortar casinos, iGaming and limited stakes gaming. While the increase in gaming revenues set a new record, the give and take of gaming revenues continues to place pressure on existing operators. For the first time in the modern era of gaming (starting in 1989) the number of casinos operating declined during the calendar year. At the end of 2014 there were 941 brick-and-mortar commercial and tribal casinos, which was four less than the 945 casinos operating at the end of 2013. The revenue growth seen in 2014 is largely attributed to the growth in iGaming and limited stakes gaming. These two segments of the industry saw a combined increase in gaming revenues of $479.5 million.

Commercial Gaming After achieving record gaming revenues in 2013, the commercial gaming segment could not sustain the growth in 2014. The overall commercial gaming market declined 0.6% in 2014, generating $37.5 billion. Of the 23 states that have commercial gaming, only 8 states saw an increase in gaming revenues. The decline in commercial gaming revenues does not come as a surprise to the industry, as the 2014 news headlines were focused on the closure of four Atlantic City casinos and the impending bankruptcy of Caesar’s Entertainment (eventually occurring on January 15, 2015). Beyond these headlines, there were two important trends that go beyond the 2014 numbers.

PERCENTAGE OF GAMING REVENUES BY GAMING SEGMENT

iGaming

Limited Stakes Gaming

4.4%

0.2%

40.8%

54.6%

Tribal Gaming

Commercial Gaming

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