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New York, NY, United States (AHN) – The gaming industry which has been hard hit in recent years is slated is slated to rebound due to improved economic conditions triggering a recovery in U.S. gaming revenues in late 2011. However 2007 pre-economic meltdown gaming revenue levels will not return until 2012. 

According to PwC’s Playing to win: The outlook for the global casino and online gaming market to 2014, U.S. gaming revenues will rise to $68.3 billion in 2014 from $57.2 billion in 2009, marking a 3.6 percent compound annual increase.

The report also found that U.S. will remain the largest region in 2014, however Asia Pacific will be the fastest growing region with a projected 23.6 percent increase compounded annually to $62.9 billion in 2014 from $21.8 billion in 2009.

“The gaming industry is facing an evolution, which presents both challenges and opportunities for the industry’s established players and those considering to enter the market,” said Mary Lynn Palenik, director, gaming, entertainment, media & communications practice, PwC US. 

She goes on to say, “The explosion of entertainment choices for consumers will make it vital for the industry to produce an offering and experience that consumers want to spend money on.”

Regional Casinos will be Fastest Growing Category 

Propped by the growth in racetrack casinos, regional casinos will be the fastest growing category during the next five years as investment in new and improved offerings and facilities continue to re-direct visitors and revenue. 

Tribal casinos, which fueled growth at double digit annual rates through 2006, have experienced fewer openings over the last few years, a slower economy, and increased competition from regional casinos. 

A return to double digit increases which filled coffers the first half of the decade is not expected. Rather, revenues at tribal casinos will increase from $26.5 billion in 2009 to $30.3 billion in 2014, a 2.7 percent compound annual increase.

The Nevada market – which includes Las Vegas, Laughlin and Reno – experienced double digit declines in 2008 and 2009, which can be attributed to the fact that Nevada casinos, more than any other casinos in the U.S., rely on foreign visitors where tourism has been down, as well as out-of-state visitation from regions that have also been significantly impacted by the global recession.

But the report finds that over the five year forecast, Nevada will increase at a 4.1 percent compound annual rate to $12.5 billion in 2014 from $10.2 billion in 2009.

According to the report, Atlantic City is the only market where revenues in 2014 will be lower than in 2009. The region has suffered the most by the economic downturn and growing competitive pressures from regional casinos in Pennsylvania and New York. For the forecast period, PwC projects a 3.2 percent compound annual decline, from $3.9 billion in 2009 to $3.4 billion in 2014.

Moving forward analysts believe social networking sites will be a key distribution platform for online gaming services, resulting in collaborative partnerships between gaming brands and social networks. 

Lotteries will also grow via interstate collaboration and online pooling while taking advantage of new online offerings.

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