Fitch Ratings is forecasting moderate growth for the global gaming industry in 2018, but warns that oversupply in the Northeastern U.S. market will challenge operators to achieve sizable increases in revenue.
More than 8,875 new slots are expected to come online next year, according to a new report issued by the debt-rating firm.
The emergence of a rejuvenated Caesars Entertainment from Chapter 11 reorganization is expected to contribute to the supply. Other contributing factors include the opening next year of Atlantic City’s Hard Rock Hotel & Casino; a likely sale and reopening of Atlantic City’s Revel; and the opening of MGM Springfield in Massachusetts and Resorts World Catskills in New York.
Fitch Senior Director Alex Bumazhny said 2018 “is set to be a good year for gaming operators and suppliers globally amid a strong economic backdrop and a relatively benign new supply environment.”
But it won’t be entirely smooth and “is not without risk for all,” he wrote. “The Northeast U.S. will get more saturated with four casino openings.”
