, after reading this article from " Gambling Resourses , May 08 "
I feel you may be doing better than the average bear out there, there are many other Gambling Institutions , that don't have 1/2 the Loyal Support you do, through these unique and difficult times, and they are probally envying you right now.
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" The gambling industry has long been considered immune to the effects of recession but recently, things appear to be taking a turn for the worse. A theory has stood for many years that those who engage in gambling activities such as casinos, lotteries and racetracks will spend more in times of economic difficulty in order to increase their chances of wining much needed money. However, during the last year whilst the value of the dollar has dropped and inflation prices have risen, many casino companies in the US have experienced a sharp decline in revenue.
When a country goes into recession, most individuals and companies are affected in some way. Individuals tighten their spending and seek repairs rather than buying new goods. It was believed that the gambling industry was largely unaffected during a recession. The theory being that during economic decline, many customers keep gambling – or even increase their spending - in a desperate bid to win money when they need it most. This compensates for any decline in gambling amongst those who choose to tighten their belts.
It is a theory which a couple of decades ago would have held true. At a time when gambling in the US was confined to horseracing and a few gambling resorts, demand and participation of gambling remained steady even throughout economic difficulties. However, the industry is different today, far more diverse and unlikely to resist a recession in the same way, if at all.
Nowadays, legal gambling is not restricted to the hardcore gambler but is instead a market open and accessible to millions of mainstream spending Americans. As a result, gambling funds tend to come from the same pocket as all other amenities such as shopping bills and fuel. As the latter increase and people are reaching the end of their credit limit, less money is available to the individual to spend at gambling facilities.
In Atlantic City, every casino has reported a drop in revenue since March this year, in one case, up to a 10 % drop overall compared to the previous year. The steepest drops in revenue have occurred in the first part of this year, with the hardest hit drop of 6.4%. Shares have dropped for casinos including MGM Mirage and Las Vegas Sands Corp, and it has been reported that gamblers are booking shorter stays at Las Vegas Casino resorts and generally spending less, both on entertainment and eating out, as well as the tables.
It is impossible to entirely assign all declines to recent changes in the economy and increased inflation, as there are many other factors to be considered including the smoking ban, more gambling venues and the success of online gambling. However, the decline in revenue witnessed by casinos both in the U.S and U.K act as a reminder to all in the gambling industry that they are a consumer-driven industry and vulnerable to external factors that affect spending.
In light of this, many casinos have begun to take the possibility of future decline very seriously. The MGM Mirage has announced a plan to lay off 400 middle managers in order to save $200 million a year, whilst the Atlantic City Hilton Casino is offering customers the option to pawn gold in return for gambling money.
It seems the myth of the recession-proof gambling industry has been disproved, and during this time of economic difficulty, the gambling industry needs to prepare itself for a potentially rough ride. "
If we can get through this, we can get through anything