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Online Gaming Market Stable Despite Global Financial Downturn
The global casino and online gaming industries have weathered the financial storms, but some areas have seen more dramatic declines in revenue than others.Across the country KZN performed the best at 4.5%, followed by Gauteng at 2.3%. The Western Cape experienced a 4.5% decline over the same period on the back of a 2% decline in the previous reporting period.
These are some of the highlights from PwC’s newly launched report, Playing to Win, which looks at the trends in both the casino and online gaming industries.“Our analysis of the industry is supported by forecasts for global spending through to 2014,” says Nikki Forster PwC’s Hospitality & Gaming leader.It is clear that the shift of power within the global sector is moving from the West to the East.By 2014, the global gaming industry will still be dominated by large and prestigious gaming developments. However, there will be dramatic shifts as online gaming revenues take-off in many markets and the spending power moves from West to East.
Casino gaming has not been immune to the recent recession. The industry experienced a 2.8% decline in total global spending in 2009, masking a slump of 12.2% in Europe, the Middle East and a 3.4% drop in spending in the US.Results from the provincial gambling boards for the remainder of 2010 show a similar picture. In Gauteng, slots revenue rose by a mere 2.9% in the first nine months of 2010 compared to the same period in 2009, with a limited impact (5% increase) from the Soccer World Cup (SWC).The impact of SWC was much greater with year-on-year increases in excess of 40% during this period and, even 135% around the time of the final, due in part to direct marketing and soccer/casino packages on offer. If the SWC is factored out, tables revenue actually declined by 5.8% during 2010, largely attributed to the loss of the big gamblers.
The picture was similar in other provinces, with the Western Cape growing its slots by 1.8% in the period to October 2010 or 1% if adjusted for the SWC. Table revenues also suffered, declining 0.3% or 3.5% excluding SWC. KZN performed marginally better with year-on-year increases of 5.7% for slots but with a decline 0f 1.5% in tables revenue.In contrast, Asia Pacific, which overtook Europe, Middle East, as the world’s second largest region for casino gaming, has hardly paused for breath, showing only a modest slowdown in growth to 7.4% in 2009, before rebounding back to growth of nearly 50% in 2010. The smaller Latin American market also experienced growth and was less impacted by the recession.
These are some of the highlights from PwC’s newly launched report, Playing to Win, which looks at the trends in both the casino and online gaming industries.“Our analysis of the industry is supported by forecasts for global spending through to 2014,” says Nikki Forster PwC’s Hospitality & Gaming leader.It is clear that the shift of power within the global sector is moving from the West to the East.By 2014, the global gaming industry will still be dominated by large and prestigious gaming developments. However, there will be dramatic shifts as online gaming revenues take-off in many markets and the spending power moves from West to East.
Casino gaming has not been immune to the recent recession. The industry experienced a 2.8% decline in total global spending in 2009, masking a slump of 12.2% in Europe, the Middle East and a 3.4% drop in spending in the US.Results from the provincial gambling boards for the remainder of 2010 show a similar picture. In Gauteng, slots revenue rose by a mere 2.9% in the first nine months of 2010 compared to the same period in 2009, with a limited impact (5% increase) from the Soccer World Cup (SWC).The impact of SWC was much greater with year-on-year increases in excess of 40% during this period and, even 135% around the time of the final, due in part to direct marketing and soccer/casino packages on offer. If the SWC is factored out, tables revenue actually declined by 5.8% during 2010, largely attributed to the loss of the big gamblers.
The picture was similar in other provinces, with the Western Cape growing its slots by 1.8% in the period to October 2010 or 1% if adjusted for the SWC. Table revenues also suffered, declining 0.3% or 3.5% excluding SWC. KZN performed marginally better with year-on-year increases of 5.7% for slots but with a decline 0f 1.5% in tables revenue.In contrast, Asia Pacific, which overtook Europe, Middle East, as the world’s second largest region for casino gaming, has hardly paused for breath, showing only a modest slowdown in growth to 7.4% in 2009, before rebounding back to growth of nearly 50% in 2010. The smaller Latin American market also experienced growth and was less impacted by the recession.