Casinos See Revenue Increase When Focused on Gambling
The casino industry, led by Las Vegas and Atlantic City operators, is crying the blues over the economic downturn. Previously considered recession-proof, the gambling field is experiencing revenue declines unknown in its past. But a closer look reveals that different branches of the industry are feeling the effects in different ways.
Last week, a marketing survey done by Internet specialists comScore found that the number of US players visiting online casinos had increased by over a million from the previous month, to well over sixteen million unique visitors in November. This was an increase from October of eleven percent.
Now, Louisiana casinos are reporting growth. Harrah's New Orleans Casino combined with four racinos and thirteen riverboats to bring in $215 million in winnings in November, up from $203 million last year. That number also reflects an increase from October, when the take was $208 million.
Earlier, Pennsylvania casinos reported significant gains the last year, and Mississippi had only hurricane interruptions to prevent major revenue increases there.
Florida Seminole casinos are reporting increases in revenues, as are other Indian gambling operations around the US.
The continued problems at the destination casinos in Nevada and New Jersey seem to be rooted deeper than the overall economic picture. When all markets were booming, so were the massive operators, but in a more selective situation, those resorts are facing patrons finding other ways to gamble.
The Bradley Theory, developed by Online Casino Advisory head gaming analyst Sherman Bradley, foresees this disparate result. According to Bradley, Vegas Strip troubles are as much due to change in business philosophy as world financial trouble.
"By trying to squeeze pennies from the features they used to use for marketing and drawing customers... meals, rooms, shows... the casino giants have drifted away from basic gambling industry tenets. If they are not satisfied with the billions to be earned through gambling, and insist on trying to add revenue streams from what should be used as enticements, they will continue to lose patrons to online casinos and neighborhood gambling spots."
