Q2 top-line growth should be weak, again
- Despite an improvement in US consumer discretionary spending and sentiment trends in 2013, domestic gaming continues to lag. Demographic headwinds are to blame, in our opinion.
- US domestic gaming revenues (excluding Indian casinos) growth has been slowing since Q3 2012 despite the recent opening of new casino markets
- Q1 2013 US gaming revenues grew a pathetic 0.5% YoY; on a same-store basis, Q1 revenues dropped 4.2% YoY
- For the mature regional gambling markets, April same-store revenues tumbled 4% YoY, in-line with our projections. We believe May revenues could be flat, followed by further declines in June.
