Casinos and Casino Hotels

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 483 casinos in the US operate facilities that offer gambling activities, such as slot machines, table wagering games, and sports betting. Casino hotels provide short-term lodging and casino activities on-premise. Gambling machines and table wagering games account for the majority of industry revenue. Other sources of revenue include room accommodations, meals, beverages, and other services.

Heavy Regulation

The casino industry is highly regulated at the federal and state level, due to the cash-intensive nature of the business.

Competition from Alternative Forms of Entertainment

Casinos and casino hotels face competition from alternative forms of entertainment and lodging.

Industry size & Structure

The average casino establishment employs about 259 workers and generates about $83 million annually. The average casino hotel establishment employs 770 workers and generates about $259 million annually.

    • The casino industry includes about 276 establishments that generate $17 billion annually and employ 53,000 workers. The casino hotel industry includes about 456 establishments that generate $72 billion annually and employ almost 214,300 workers.
    • Both industries are highly concentrated; the top 50 firms account for 80% of industry revenue.
    • In the US, 24 states offer legalized gambling. The largest US casino markets are Las Vegas, NV, Atlantic City, NJ, and the Chicago IL/IN area.
    • Large firms include Caesars Entertainment, Penn National Gaming, Las Vegas Sands, and Wynn Resorts.
    • Native American gaming operations are owned by sovereign tribes and located on tribal land. In 2019, the tribal gaming industry consisted of 245 tribal nations that operated 522 casinos located in 29 states. Revenue per tribal casino averaged about $66 million.
    • Several large firms have international operations, with a focus in Asian markets. The Chinese territory has become one of the world's biggest gambling markets, with $42.7 billion in revenue, according to the 2020 China Game Industry Report.
                              Industry Forecast
                              Casinos and Casino Hotels Industry Growth
                              Source: Vertical IQ and Inforum

                              Coronavirus Update

                              Apr 18, 2022 - Revenue At Atlantic City Casinos Hits Pre-pandemic Level
                              • Atlantic City's casinos earned $766.8 million in 2021, far eclipsing the $117.5 million they made in 2020. Their 2021 performance also exceeded that of 2019, the year before the coronavirus outbreak, when the casinos collectively earned nearly $594 million. “This should help operators as they seek to make up significant reductions in (gross operating profit) from 2020 and finance the major capital improvement projects currently underway at properties throughout the city,” said Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University, which studies the Atlantic City casino industry.
                              • Hawaii, the last US state with a mask mandate in place, allowed the mandate to expire on March 25. Casinos and casino hotels are likely to benefit from the expiration of mask mandates if foot traffic increases. The US Centers for Disease Control and Prevention's latest guidance recommends that people continue to wear masks indoors in communities with high levels of Covid-19. The agency last week said that more than 90% of US residents are now in a location with low or medium Covid-19 community levels.
                              • Nearly 4 million Americans on average quit their jobs each month in 2021, according to the US Department of Labor. Experts have called it an unprecedented wave of workplace turnover as the economy emerged from a pandemic-induced recession that, while brief, appears to be leaving a lasting imprint on the US job market.
                              • The Mohegan Tribal Gaming Authority is suing its insurance carrier over what it says was the denial of claims for millions of dollars in losses at its Mohegan Sun casino that were caused by the COVID-19 pandemic. Analysts say that that the lawsuit is similar to one that the Mashantucket Pequot Tribe, owner of the Foxwoods Resort Casino, brought against the same insurer in February. The Mashantuckets say in their lawsuit that more than $76 million in losses caused by pandemic-related closures at Foxwoods and other properties they own, including a spa, museum, and golf course, should be covered under its “all risk” policy. The insurer said in a court filing in the Mashantucket case the that losses caused by viruses and contamination are specifically excluded from the casino’s policy and is seeking to have that case dismissed.
                              • The Centers for Disease Control and Prevention has said that cleaning once a day is usually enough to minimize the chance of coronavirus transmission in most settings. Casinos and casino hotels are likely to benefit if the guidance results in lower pandemic-related cleaning costs. The CDC did identify one appropriate situation for deep cleaning: an indoor environment where a case of COVID-19 had been confirmed within the past 24 hours.
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