Analyst Claims Casino Industry Has Bottomed Out; Competition Looms

Moody's Investor Services had a negative outlook on the casino industry in the US for quite some time now, but has finally re-evaluated their opinion. Moody's has listed the gaming industry as stable, and believes the industry may have finally bottomed out.

The industry, for the first time in history, was severely hurt by the economy in the US. The economic recession toppled even some of the biggest gaming destinations in the world, such as Las Vegas and Atlantic City.

With the economy improving, the consensus within the gaming industry is that revenue would soon be heading back to normal. The figures have not supported an increase, but the numbers over the past couple of months also do not show that revenue is slipping.

When gamblers do decide to go back to the casinos, they will have plenty of more options than when the recession started several years ago. Casino gambling expansion has been among the top issues for lawmakers all across the country.

Over half of the country's states have expanded gambling in some form in recent years. Pennsylvania, Florida, and California have been among the most aggressive states, with Pennsylvania adding table games at their casinos, and Florida and California both considering regulated online gambling.

New Jersey legislators are not only discussing the possibility of online gambling, but sports gambling for their casinos could become a reality. With Pennsylvania casinos making a strong push to become the gaming capital of the Northeast, the sports betting could be a way for New Jersey ton once again distance themselves from the pack.

While Moody's did increase their outlook to stable, they confirmed their thoughts that the industry still has a long way to go before the rating will be improved again. Debt that has occurred during the recession will have to be eliminated by many gaming companies before analysts begin to trust the industry's future revenue potential.

June 22, 2010
Posted By Terry Goodwin
Staff Editor, CasinoGamblingWeb.com
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