A report by Buinsess Wire yesturday stated how the US Gaming Industry was facing a hard 2009 after the difficult 2008. With the global economic conditions being the blame for all ts problems.
Fitch Ratings suggested that the “the steepest GDP decline since WWII” would be seen. A daunting prospect for the industry, and one that will see it struggle until 2010.
It is said to be from the impact of US consumers being stretched financially in 2009, from low confidence in the economy accompanied by weak employment trends.
Many investors did not expect the gaming industry to experience such an impact as it has from the difficult financial conditions consumers have suffered this year. Generally, gaming spend per visit has been affected more than visitation levels themselves, which can and have been strengthened by promotions.
Fitch also believes that due to external factors like the reduction in airline capacity, it is likely local markets will fare better than destination markets, such as the Las Vegas Strip.
In its Outlook of 2008, Fitch Ratings implied that it expected the gaming industry to be more economically sensitive than in previous downturns, something clear for all to see this past year.