The domestic gaming market has serious issues it must address. Since April of 2012, our Gaming, Leisure and Lodging team has churned out research discussing the lack of recovery in Las Vegas and the regional markets. It essentially breaks down to two points: demographics and economic sensitivity.
In terms of demographics, the truth of the matter is that younger generations aren’t enticed by what slot machines have to offer. The shrinking baby boomer generation has amplified gaming revenues in the past and attempts to appeal to younger players have not worked. Young people like video games, not Deuces Wild and archaic technology with random outcomes.
On the economic side of things, gaming has proved to be more sensitive to economic downturn than virtually all other consumer sectors. Higher taxes in 2013 will certainly not help the situation, nor macro tailwinds. Addtionally, there’s a lower percentage of people gambling, smaller casino budgets, first time visitors are at an all-time low, daily hours gambled are at an all-time low and the younger crowd is busy clubbing, not gambling. Vegas and regional casinos will need a full blown economic recovery and new ideas if they want a shot at recovery.