Chips are down for casinos as gamblers feel pinch

Revenue and employment sank at America's commercial casinos for the second straight year last year as consumers kept tight hold of their wallets during the recession and remained cautious at slot machines and gambling tables.

The American Gaming Association said yesterday casino revenue declined 5.5 per cent nationwide last year to US$30.74 billion ($43.28 billion).

Commercial casinos' payments to state and local governments fell 1.6 per cent last year to US$5.59 billion.

The trade group, which did not report on tribal casinos, found that casino visitors equalled more than a quarter of the United States population last year, but they spent less and risked less while they were there.

Owen O'Malley, a New York resident visiting Atlantic City, saw the difference in less crowded gambling tables and a much easier time settling down in front of a slot machine.

"You can see for yourself that the business is just not there," he said.

"It's definitely less crowded. It's easier to find a table nowadays."

The gaming group found that 48 per cent of all gamblers set a budget of less than US$100 last year, up from 45 per cent in 2008.

Atlantic City, the second-largest US gambling market after Las Vegas, was the epicentre of the casino industry's woes last year. Revenue there fell 13.2 per cent from 2008.

New Jersey was for years the only state besides Nevada with legal casinos, but it's now beset on all sides by fierce competition from slots parlours in Pennsylvania, New York and Delaware, not to mention Indian casinos a short drive away in Connecticut.

Nevada's casinos took in 10.4 per cent less, or US$10.3 billion.

"These results neatly summarise what casino operators, casino employees and state budget officers already experienced: 2009 was a difficult year for the industry," said Joe Weinert, senior vice-president of Spectrum Gaming Group, a New Jersey casino consulting firm.

"Few gaming markets were spared the impacts of the bad economy," he said.

"As we saw, beginning in the second half of 2008, the casino industry is no longer resistant to recession. For better or worse, the industry's 2010 performance will be tied to Americans' feelings of financial well-being."

Pennsylvania led the US in casino revenue growth with a 21.6 per cent increase. Much of that is attributable to two new casinos opening last year, bringing the state's total to nine.

Casino revenue also rose in three other states - Colorado, Missouri and Indiana.

The report found 328,377 people were employed by gambling halls last year, a decline of more than 8 per cent from 2008.

Racetrack casinos continued to grow last year, despite the recession. Revenue rose 5 per cent to US$6.4 billion, led by so-called "racinos" in Pennsylvania and Indiana.

Tax revenues from racinos was up 1.2 per cent to US$2.63 billion.

The report found slot machines are the most popular form of casino gambling, favoured by 59 per cent of gamblers. Colorado and South Dakota derive more than 90 per cent of their casino revenue from slots.

- AP