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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. 

CHART DU JOUR: US GAMING: SOFT SLOTS - b