RubinBrown Gaming Stats 2017

UNITED STATES GAMING INDUSTRY OVERVIEW

(Originally published in the April 2017 issue of Casino Journal)

U.S. gaming surpasses $73 billion in annual revenues; commercial gaming lags in growth; iGaming achieves breakeven

In 2016, the United States gaming industry generated $73.1 billion, growing at an annual rate of 2.0%.

For purposes of this annual analysis, the United States gaming industry includes the following four segments: commercial casinos, tribal gaming, limited stakes gaming and iGaming. The United States gaming industry represents over 1,000 brick-and-mortar casinos located across 40 states, over 15,000 bars, restaurants and truck stops offering limited stakes gaming across 6 states, and 9 iGaming operators. During 2016, the overall gaming industry’s growth rate fell below the national inflation rate of 2.1%; however, three of the four industry segments produced growth in excess of inflation. Commercial casinos continue to be the industry’s leading segment, as they represent more than 50% of both the annual revenues and number of casinos. The slow growth produced within the commercial casino segment ultimately lowered the collective industry’s growth rate below the national inflation rate.

The following summarizes the 2016 performance of each gaming segment and what can be expected in the near term.

Commercial Gaming During 2016, the commercial gaming segment generated $38.7 billion, growing at a rate of 0.9%. Overall the industry segment represents 24 states and 581 casinos.

iGaming PERCENTAGE OF GAMING REVENUES BY GAMING SEGMENT

The low growth seen within the commercial casino segment was driven by weak economic conditions in key markets, limited expansion activities and increased competition from other gaming segments. Specific to Louisiana (the third largest commercial gaming state), depressed energy prices initially led to weak economic conditions which were further compounded with the devastation brought by the August flooding within the Baton Rouge and Interstate 10 markets. The impact of these external factors changed Louisiana’s gaming fortunes as

Limited Stakes Gaming

4.8%

0.3%

revenue declined by $110.9 million or 4.2% in 2016. Unlike

42.0%

52.9%

prior years, where poor regional performances were offset through new market expansion efforts, there was limited expansion in

Tribal Gaming

Commercial Gaming

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