Global Gaming Revenues Up 5.6% in 2011
According to research by Global Betting and Gaming Consultants total Global gaming revenues exceeded $400 billion (USD) in 2011. The figures showed that gambling generated $419 billion in total global gaming revenues. The new figure represents an increase of 5.6% year on year. The research firm predicts that total gaming revenues for 2012 will hit $448 billion. Asia led the world in gaming growth and the strongest growth was in Cambodia, Macau and Singapore. Emerging markets have been more resilient to the global economic crisis. Lorian Pilling, a director at Isle of Man, U.K.-based Global Betting & Gaming Consultants stated “It’s closely linked to the wider economic situation. In 2009, at the height of the crisis, gambling was hit like any other sector.”
Global Betting and Gaming Consultants predicts that casino revenues will overtake lotteries as the prime source of gambling revenues. In 2011 lotteries produced 28% of gaming revenues followed by casinos in Macau, Singapore and Cambodia. The figures do not include revenues generated by tribal gaming in the United States. Pilling said “Lotteries tend to do quite well in recessions, but we need a resolution in the crisis in Europe because uncertainty is hitting the market.” Doubts about the resolution of the European debt crisis have undermined economic recovery. Greece is facing a 14.5 billion-euro ($19.3 billion) bond payment due in March and is struggling to secure financing to avert a collapse of the Greek economy which could trigger another recession and pressure the Euro.
Economic developments in China will have an effect on the rate of gaming growth Macau. Pilling observed “If China’s economy does have a crash landing, it is difficult to see Macau’s gaming growth rates being maintained.” Currently Macau’s gaming industry is booming and investors from around the world are pouring millions into the city to cash in on the gambling boom. In the United States revenues from gaming machines outside casinos fell by about 14% but lottery sales rose 2.2% in 2011. In Europe 2011 gambling revenues increased by about 5.5% after falling 6% in 2010. Pilling is optimistic about growth in the US and stated “A strong recovery in the U.S. would help gaming revenues that have been hit hard in recent years. North America will continue to recover. We’re fairly cautious on Europe; growth is seen at 3.5% across all gambling categories because of the uncertainty in the euro zone.”
While the current figures apply to brick and mortar casinos figures for the internet gambling industry are hard to find. Because there are so many internet gambling operations in jurisdictions around the globe compiling industry figures would be a daunting task. According to most available figures is appears that the internet gambling industry is also expanding and since the US government just ruled that intrastate internet gambling is legal gaming experts are predicting rapid growth for the industry.
