“The sluggish economic recovery has deterred consumers from spending on discretionary services.”
New York, NY (PRWEB) December 05, 2014
The Gambling industry has struggled over the past five years against a number of head winds that have reduced overall demand for gambling. The sluggish economic recovery since the recession has weighed on consumers, as they have been unwilling or unable spend on discretionary services such as gambling. According to IBISWorld Industry Analyst Andy Brennan, “Canada is not the only country experiencing a slowdown in gambling; spending on games of chance has flattened out throughout the western world over the past five years, following a sustained period of rapid growth.” Anemic per capita income growth coupled with rising prices of many essential products has left less money in the pockets of consumers. Furthermore, rising competition from new casinos and other gambling establishments in the United States has hurt the industry. The strong Canadian dollar has also hurt domestic casinos, as US residents have been less willing to travel across the border to gamble. Overall, industry revenue is expected to decline moderately in the five years through 2014.
The Gambling industry is highly concentrated due to its unique regularity structure, which means the provinces control the licensing, regulation and, in some cases the operation, of games of chance. All provinces participate in national lottery schemes, but all provinces have different standards relating to games of chance, permitting or prohibiting different games. For example, casinos in Canada carry a range of regulatory forms and may be commercial, charitable, government owned and operated or owned by private companies under contract by provincial gaming authorities.
“The industry will face an uphill battle over the next five years,” Brennan says. “Per capita household income is expected to pick up; however, many Canadians are focused on paying down debt and increasing savings, rather than splashing out on discretionary purchases.” Furthermore, New York, Massachusetts and a growing number of US states have recently legislated to allow more destination casinos, meaning Canadians may be tempted across the border to gamble, and US residents are more likely to stay at home. Even if casino revenue drops, lottery sales will remain stable, driven by more online sales of lottery tickets. Overall, industry revenue is anticipated to grow marginally over the five years to 2019.
For more information, visit IBISWorld’s Gambling in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry provides short-term lodging in hotel facilities that have a casino on the premises. The casino operations may include table wagering games and other gambling activities, such as slot machines and sports betting. These establishments may offer a range of services and amenities, such as food and beverage, entertainment, valet parking, swimming pools and conference and convention facilities.
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