Las Vegas – Global gambling revenue is estimated to pass USD 155 billion in 2012 after growing at an annually compounded rate of 6.5 percent per year, according to a PricewaterhouseCoopers LLP report released Wednesday.
Gambling revenue is expected to rise from nearly USD 114 billion in 2007 because of new casinos and upgrades to existing ones around the world, the report said.
The annual report by the financial consulting company identified the Asia Pacific region as the world’s fastest growing gambling region with new resorts in the Chinese enclave of Macau as well as Singapore and Thailand helping generate increases of 15.2 percent annually. Revenue from the Asia Pacific region will hit USD 37.2 billion in 2012 compared with USD 18.3 billion in 2007.
Total gambling revenue in the United States will remain well ahead of other regions, growing at 4 percent annually from USD 60.3 billion in 2007 to USD 73.3 billion in 2012, the report said.
But tough economic times will lead to declining revenues in 2008 and 2009 in Nevada and Atlantic City, N.J., according to the report.
Mary Lynn Palenik of PricewaterhouseCoopers said the mortgage crisis and high gas and travel prices will lead to the decline.
„It translates into fewer U.S. travelers,“ Palenik said.
Palenik said international travelers won’t pick up all the slack of lagging domestic travel.
The report predicts a turnaround for Nevada starting in 2010, with revenues expected to reach USD 14.8 billion in 2012 from USD 12.8 billion in 2007, an increase of 2.9 percent per year.
Atlantic City was seen generating USD 4.74 billion in 2012, down from USD 4.94 billion in 2007.
New casinos as well as licenses for online gambling and sports betting in the region encompassing Europe, the Middle East and Africa are expected to drive revenues in the region up 4.9 percent a year from USD 30.3 billion in 2007 to USD 38.4 billion in 2012. Gambling revenue in Canada is seen rising to USD 6.2 billion from USD 4.6 billion, while in Latin America, revenues are expected to climb to USD 514 million from USD 297 million.
The report said revenue from U.S. tribal casinos would increase to USD 33 billion in 2012, up 4.5 percent per year from USD 26.5 billion in 2007.
Regional U.S. casinos outside of Nevada and Atlantic City, not including tribal casinos, were seen gaining 5.3 percent a year to USD 20.6 billion, while global sports betting was seen rising 7 percent per year to USD 7.6 billion in 2012.