Spring 2013 issue of Horizons

Examples of the challenges can be seen from coast to coast as a California tribal casino was forced to close its doors after defaulting on its debt and Atlantic City’s newest casino required additional financing to fund its operations through the winter months. Commercial Gaming Focusing on the United States commercial gaming industry, overall gaming revenue returned to levels seen in 2007. In 2012, gaming revenues increased by 4.9% from 2011, to $37.4 billion. Of the 23 states offering commercial gaming, fifteen experienced revenue growth, seven experienced revenue declines, and Ohio welcomed its first four casinos.

While reaching the 2007 revenue levels is a significant milestone for the commercial gaming industry, today’s environment looks much different with competition between neighboring states at an all-time high. Eleven of the fifteen states that had increases in gaming revenues benefited from either a new casino opening in 2012 or having a casino that opened in 2011 and operated for a full twelve months during 2012. For the states that experienced revenue declines, six of the seven states saw a neighboring jurisdiction expand their commercial gaming operations. The only state not to see neighboring commercial casino expansion was New Mexico, which experienced increased tribal gaming competition as the Navajo Nation continues its casino expansion.

Commercial Gaming Revenue by State

Change in Number of Casinos

2011 Gaming Revenue (in millions)

2012 Gaming Revenue (in millions)

Revenue Growth/(Decline)

State

Number of Casinos

Colorado Delaware

41

+1

$751.42 $547.87 $381.72

$774.22 $520.55 $442.55

3.0%

3 6

-

-5.0% 15.9% 10.9% -3.1%

Florida ¹

+1

Illinois

10 13 18

- - -

$1,477.60 $2,697.07 $1,424.00

$1,638.17 $2,613.86 $1,466.76

Indiana *

Iowa

3.0%

Kansas

3

+1

$46.06

$341.14

640.6%

Louisiana

18

-

$2,374.24

$2,403.67

1.2%

Maine

2 3 3

+1 +1

$59.45

$99.22

66.9%

Maryland † Michigan Mississippi

$155.71

$377.81

142.6%

- -

$1,424.45 $2,237.07 $1,805.32 $10,700.99

$1,416.73 $2,251.09 $1,768.82 $10,860.71

-0.5%

30 13

0.6%

Missouri Nevada

+1

-2.0%

336

-4

1.5%

New Jersey

12

+1

$3,317.72

$3,051.87

-8.0% -3.0% 43.1% 6.4% 4.4% 2.9% 6.4% -0.9% n/a

New Mexico ¹

5 9 4 2

- -

$248.92

$241.48

New York ¹

$1,259.81

$1,802.21

Ohio ‡

+4

n/a

$429.83 $113.06

Oklahoma ¹

-

$106.23

Pennsylvania Rhode Island ¹ South Dakota West Virginia

11

+1

$3,025.05

$3,158.32

2

- - -

$512.86 $100.90 $958.70

$527.96 $107.38 $949.85

35

5

Totals

584

+8

$35,613.18

$37,357.27

4.9%

¹ Commercial gaming is limited to slots-only racinos. * Indiana has 11 full-scale commercial casinos and two slots-only racinos. † Maryland casinos were limited to slots-only facilities in 2012; in 2013 Maryland legalized table games. ‡ Ohio opened four casinos in 2012, with three full-scale casinos and one slots-only racino.

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