The U.S. casino industry logged record revenues last year, according to a report by Missouri accounting firm Rubin Brown. The report shows that commercial and tribal casinos generated .3 billion in 2013, up 16 percent over 2012.
According to the report, the gaming industry has logged a steady increase in revenue over the past four years following the recession. Revenue growth has largely been attributed to market expansion, as states continue to legalize gaming and more tribes enter the gaming industry.
But while the market expansion has increased revenue for the overall gaming industry, existing operators have seen declining revenues from the increased competition, the report said.
Commercial gaming expanded 1.3 percent in 2013, reaching $37.83 billion, in part because six states with commercial gaming operations built new or expanded existing gaming facilities last year. Las Vegas experienced a small increase in revenue in 2013, hitting nearly $6.51 billion and remaining the top U.S. commercial gaming market.
In addition, the state of Nevada dominated the country, generating $11.14 billion in commercial gaming revenue. Atlantic City again held the second-top market spot; however, revenue slightly decreased in 2013 to $2.93 billion, while the entire state of New Jersey experienced a 3.7 percent decline in revenue.
The state of Ohio had the largest increase in gaming revenue at 149.1 percent, generating $1.07 billion, as the market benefited from the opening of three new slot-only racinos, one new full-service casino in 2013, and having 12 full months of operation for the existing casinos.
Maryland was second to Ohio, with a 98.2 percent increase in revenue, due in part to the state’s legalization of gaming tables. Market saturation was most notable in Pennsylvania, which, despite opening its 12th casino, experienced its first year-over-year decline of 1.5 percent in gaming revenue since its first casino opened in 2006. Delaware saw the largest decline in gaming revenue, decreasing 17 percent from 2012 to $432 million.
The report’s authors noted the need for casinos to cater to younger clientele. “The target market for the traditional brick-and-mortar casino floors is aging, so now is a critical time for casino operators to identify ways to make their facilities more attractive as local entertainment destinations for the younger generations,” said lead author Daniel Holmes.
Tribal gaming grew by 2.8 percent in 2012, which set a new industry record of $27.91 billion in gaming revenues (fiscal year 2013 data is not yet available). The Oklahoma market continues to lead the nation in growth, as the Oklahoma City and Tulsa regions produced the highest growth rates, at 6.6 percent and 5.8 percent respectively.
