CasinoCityTimes.com

Gurus
News
Newsletter
Author Home Author Archives Author Books Send to a Friend Search Articles Subscribe
Stay informed with the
NEW Casino City Times newsletter!
Newsletter Signup
Stay informed with the
NEW Casino City Times newsletter!
Recent Articles
Best of Ken Adams

Gaming Guru

author's picture
 

Quick-takes: The month's trends in a glance - July 2006

11 September 2006

The stock market continued its uncertain up and down ride throughout June - taking gaming stocks with it for the most part. The feds are still fighting inflation and raising rates, making investors nervous - or so the pundits say. If it makes anyone feel better the world markets are suffering the same trends. While the market may be uncertain, the real world as measured by operating results does not seem at all uncertain. Except for Mississippi, which is still operating shorthanded, and Colorado all other jurisdictions reported higher revenues than last year.

Atlantic City: May gaming revenues rose 2.9% to $432.5 million. Alan R. Woinski, Gaming Industry Weekly Report, 6-19-06

Colorado: May casino revenue decreased to $65.6 million, down .87 percent from 2005. Rocky Mountain News, 6-19-06

Detroit: May casino revenues rose 1.1% to $107.3 million. Alan R. Woinski, Gaming Industry Weekly Report, 6-19-06

Connecticut: May slot win rose .9% to $ 150.6 million. Alan R. Woinski, Gaming Industry Weekly Report, 6-26-06

Illinois: May gaming revenues rose 5% to $161.6 million. Alan R. Woinski, Gaming Industry Weekly Report, 6-12-06

Indiana: May gaming revenue rose 1.4% to $208.6 million. Alan R. Woinski, Gaming Industry Weekly Report, 6-19-06

Iowa: Casino revenues rose 7.5% in May to $103.5 million. Racetrack revenues rose 24.4%. Alan R. Woinski, Gaming Industry Weekly Report, 6-19-06

Louisiana's casinos won $220.2 million compared with $199.5 million in May 2005, 10.3% increase. Associated Press, 6-19-06

Mississippi: May gaming revenues decreased 18.3% to $199.3 million. Alan R. Woinski, Gaming Industry Weekly Report, 6-26-06

Missouri: Gaming revenues rose 1% to $129.3 million. Alan R. Woinski, Gaming Industry Weekly Report, 6-19-06

Nevada's April casino win rose 12.7% to $989.8 million. Ryan Randazzo, Reno Gazette-Journal, 6-9-06

Gaming stocks may be unstable, and while the operating results are good, but not great, the industry has a bright future. At least that is the conclusion of a couple of reports released in June, which should make gaming investors and operators more comfortable with their choice of industries. Gaming is growing nationally and internationally, more people are going to casinos, more money is being spent on gambling, and the predictions are for continued growth.

Global revenue from gambling is expected to climb 8.8 percent annually from $82.2 billion last year to $125 billion by 2010, according to a new estimate by consultant PricewaterhouseCoopers LLP. Fueled by new casinos in the Chinese gambling enclave of Macau, the Asia-Pacific region will grow the fastest at 14 percent annually, surpassing revenue from the region encompassing Europe, the Middle East and Africa when it hits $23 billion by 2010, the firm said. The United States, which is predicted to remain the world's largest gambling market, is expected to see gambling revenue grow 6.9 percent per year, from $53.4 billion in 2005 to $74.5 billion in 2010, it said…Tribal casino operators are seen increasing their share of the U.S. market from 42 percent to 43 percent, growing from $22.7 billion to $32.5 billion by 2010…. Billions of dollars of investment in new casinos in Nevada are expected to give the state's gambling revenue an annual 8.2 percent increase from $11.7 billion to $17.3 billion, boosting the state's share from 21 percent to 23 percent of the U.S. gambling market. Associated Press, Washington Post, 6-21-06

More Than Quarter of U.S. Adults Visited a Casino At Least Once Last Year
A new national survey demonstrates Americans' enthusiasm for casino gambling and their desire to experience a broad array of entertainment choices offered by gambling venues in states throughout the country. "Profile of the American Casino Gambler: Harrah's Survey 2006" reports that Americans made more than 322 million casino trips in 2005 and that 52.8 million Americans age 21 and older (25 percent of the U.S. adult population) visited casinos to gamble at least once during the same year… Gamblers averaged just over six casino visits a year…Casino visitation was highest among adults with household incomes in excess of $95,000, who represented approximately 31 percent of all casino players in 2005. Residents in the West census region were most likely to include casino gambling in their leisure activities (33 percent of total gamblers), although participation rates among citizens in the North Central (27 percent) and North East (28 percent) regions were not far behind. Business Wire, Yahoo! Finance, 6-22-06

And if you need a little bit more to make you feel good about the gaming industry - the Harrah's survey says gamblers are trendsetters, the first in their neighborhood to take a chance on new things. That should mean there are more players just warming up in the bullpen of life getting ready to come into the game.

"Harrah's Survey 2006" reports on casino player demographics and characteristics and shows that gamblers are trendsetters in many aspects of their lives. Gamblers are more often the first to buy new products and tell others about their experiences. Business Wire, Yahoo! Finance, 6-22-06

Atlantic City became frightening in June, not in the way the Gulf Coast was frightening when the hurricanes screamed through, but in a more fundamental manner. As one of the most, if not the most regulated industry in the United States, gaming is seemingly always subject to the whims of politicians and regulators. Usually that means individual operators may face the wrath of the regulators at any time, and the industry holds its breath whenever legislators meet. But in New Jersey Governor Jon S. Corzine, in an "intraparty standoff" with the legislature over the state's budget and taxes, promised to close down the government - including the casinos, which cannot operate without the state-employed regulators.

Gov. Jon S. Corzine signed an executive order on Saturday shutting down the state's government, for the first time in its history…The order, a result of an impasse between the governor and the State Legislature over the budget for the new fiscal year, began a process in which the state, over the next few days, may close state parks, two state-run beaches and…the 12 Atlantic City casinos. Richard G. Jones, New York Times, 7-1-06

The budget stalemate dispute boils down to an intraparty standoff between Corzine and Roberts, who opposes Corzine's proposal to raise the sales tax from 6 percent to 7 percent. Roberts claims more palatable alternatives are available. Corzine maintains the alternative offered by Assembly Democrats - a combination of tax increases and spending cuts - continues a history of budgetary gimmicks that left New Jersey in debt at a time when it should be thriving. Pete McAleer, Atlantic City Press, 7-3-06

Race tracks are ordered to close by the end of tomorrow…Yesterday was the first full day since Gov. Jon S. Corzine closed state government amid a budget impasse with fellow Democrats in the Assembly…Racing at the Meadowlands was canceled Saturday night before an appeals court judge stepped in. The horse-racing industry won a reprieve late Saturday, when the judge issued an order allowing them to temporarily continue operating. Angela Delli Santi, Associated Press, Philadelphia Inquirer, 7-3-06

The lottery - which provided the state $812 million in revenue last year - is expected to continue its drawings of games for which tickets have already been sold. It may face penalties for failing to sell tickets for the multistate Mega Millions game…though if you were hoping to test your luck Saturday, you may have been out of it. The New Jersey Lottery stopped selling tickets at 8 p.m. Saturday. Lottery Post, 7-3-06

Would any governor really shut down an entire industry just to prove a point? Tell me it didn't happen - the governor of the second largest gaming state in the country didn't close all of the casinos in a political battle within his own party. Okay, it did happen, but I still can't believe it; I am waiting for Toto to pull open the curtain and expose it all as a hoax and a bad joke.

Biloxi is on its way back. Another casino opened and one more started construction in June. The only people not cheering are the casino operators in Louisiana. Without Biloxi casinos, they have been reaping the benefits of a drastically reduced Biloxi casino market. While Louisiana is thinking about Biloxi and Biloxi is thinking about rebuilding, the Indian tribes in Oklahoma are expanding as quickly as they can, cutting further into the Louisiana market and taking advantage of Biloxi's current status. Biloxi will rebuild and be a much stronger competitor. Louisiana is another story. While making hay as Biloxi gets back on its feet, Louisiana seems to be missing the real threat to its long-term growth - Oklahoma.

Minus stout competition from the Mississippi Gulf Coast and with thousands of recovery workers with time and money on their hands, Louisiana's casino industry is enjoying its biggest boom ever - thanks to the double punch of hurricanes Katrina and Rita…Flocks of gamblers have provided a revenue boost for Louisiana, which faced dire predictions of deep cuts in spending after the storms. Through the first 11 months of the current fiscal year, the state's take was $473.8 million, up sharply from $413.9 million a year ago. Alan Sayre, Associated Press, 7-2-06

The Mississippi Gaming Commission approved the locations for two proposed multi-million-dollar casino resorts…commission also declared the locations for a Foxwoods Casino in Biloxi and an Isle of Capri Casino in DeLisle as legal gambling sites. Foxwoods Development Co.… plans to spend $400 million on the Biloxi casino, which will be part of a $1 billion to $1.3 billion planned development on the more than 260-acre Biloxi Broadwater property…Tim Hinkley, president of Isle of Capri Casinos Inc., said his company plans to invest $250 million to $300 million to build what will be the first casino resort for rural Harrison County… Gulfside Casino Partnership, which is owned by Terry Green and Rick Carter, received its license to operate the Gulfport Oasis. The company closed on financing of more than $200 million to fund the build-out of the resort. Tom Wilemon, Biloxi Sun-Herald, 6-16-06

Boomtown on Thursday became the fifth casino to reopen in Biloxi since Hurricane Katrina and put 750 people back to work… Boomtown, which has no hotel, refurbished its gambling barge and installed all-new slot machines. The casino has 1,000 slots and 22 table games. Tom Wilemon, Biloxi Sun-Herald, 6-30-06

Premier Entertainment has signed a contract with Roy Anderson Corp. for the company to rebuild its Hard Rock Biloxi Casino at a cost of no more than $78.3 million, according to a recent filing with the Securities and Exchange Commission. The rebuilding should be complete by July 4, 2007… Tom Wilemon, Biloxi Sun-Herald, 6-30-06

Oklahoma's tribal casinos made more than $1.4 billion from gamblers last year, making it the second fastest growing market in the country, a new study found. Revenue grew by 39 percent as the number of electronic gambling machines rose by more than 5,100. At the end of 2005, 90 Oklahoma gaming centers held 32,961 machines and 623 table games. Anthony Thornton, Oklahoman, 6-26-06

The Louisiana, Mississippi, Oklahoma story is pretty much the story of gaming. The industry in general is healthy and growing; every year more people find casinos (online and on land) an acceptable, interesting and entertaining way to spend their disposable income. However, the number of jurisdictions and the number of licenses in most jurisdictions are limited, which means that competition is going to become more and more expensive. In gaming there is no way to reduce the price as a competitive measure; gaming operators compete by spending more on their properties, offering more amenities and giving more in promotions. This makes gaming an increasingly expensive industry into which to enter and to operate, which in turn will lead to more mergers, larger companies and the weeding out of smaller, weaker companies. But - and with gaming there is always a but - the action by the governor of New Jersey demonstrates that regardless of how healthy the industry appears, it is always an at-risk industry.

Ken Adams

Ken Adams is the principal in the gaming consulting firm, Ken Adams and Associates. Formed in 1990, Ken Adams and Associates specializes in information, analysis, and strategic planning for Indian tribes, casino operations and gaming manufacturers.

Ken spent over 20 years in the hotel-casino industry, prior to founding Ken Adams and Associates. He held the positions of: Director of Casino Operations, Casino Manager, and Keno Department Manager. During this time, he developed numerous innovative marketing and customer development programs and systems for evaluating casino performance. Some of those programs, such as slot clubs and tournaments, have become industry standards.

Ken is also actively involved in gathering and disseminating information that is important to the gaming industry. He is editor and publisher of and the Adams' Report, a monthly newsletter specializing in identifying trends in casino gaming, regulation and manufacturing, the Adams Daily Report, an electronic newsletter that provides electronic links to the key gaming stories of the day, and the Adams Review, a special report distributed by Compton Dancer Consulting that provides editorial commentary on gaming trends.
Ken Adams
Ken Adams is the principal in the gaming consulting firm, Ken Adams and Associates. Formed in 1990, Ken Adams and Associates specializes in information, analysis, and strategic planning for Indian tribes, casino operations and gaming manufacturers.

Ken spent over 20 years in the hotel-casino industry, prior to founding Ken Adams and Associates. He held the positions of: Director of Casino Operations, Casino Manager, and Keno Department Manager. During this time, he developed numerous innovative marketing and customer development programs and systems for evaluating casino performance. Some of those programs, such as slot clubs and tournaments, have become industry standards.

Ken is also actively involved in gathering and disseminating information that is important to the gaming industry. He is editor and publisher of and the Adams' Report, a monthly newsletter specializing in identifying trends in casino gaming, regulation and manufacturing, the Adams Daily Report, an electronic newsletter that provides electronic links to the key gaming stories of the day, and the Adams Review, a special report distributed by Compton Dancer Consulting that provides editorial commentary on gaming trends.