CHART DU JOUR: CT SLUMP SUPPORTS THESIS
- Over the past four years, Connecticut gross gaming revenues (Foxwoods and Mohegan Sun) have had only 3 growth months. On an absolute level, CT GGR in February hit its lowest point since February 1998.
- Since 2009, the northeast area has seen the expansion of the New York and Pennsylvania markets (Genting Resorts World New York, Sands Bethlehem, Rivers Casino, Sugarhouse, and Valley Forge), which certainly have hurt Connecticut’s gaming business. But those new ‘growth’ markets have also slowed. In February, NY gaming revenues posted its 1st YoY decline since September 2008, while PA gaming has only expanded by 2% in the last 12 months.
- CT joins virtually all other mature, domestic casino markets in struggling to post growth
- The macro, higher gas prices, and smaller paychecks aren’t the only explanation as the demographics look awful for domestic gaming. The young generation is not gambling and the core gaming player base (+50 year old) is shrinking.