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The global financial crisis and resulting recession negatively affected the Australian Casinos industry's performance. However, new challenges are emerging, particularly from interest rate rises and intensifying competition from new casino establishments opening across Asia. For these reasons, industry research firm IBISWorld has updated its report on the Casinos in Australia.
Melbourne, Australia (PRWEB) November 18, 2012
The global financial crisis and resulting recession negatively affected the Australian Casinos industry's performance. Following three consecutive years of low revenue growth, the industry has improved since 2012-13, as it benefited from more-robust domestic and international economic growth. Industry revenue is expected to increase 8.2% in 2012-13 to $5.65 billion. Over the five years through 2012-13, industry revenue is expected to increase at an annual rate of 2.9%. According to IBISWorld industry analyst Craig Shulman, “new challenges are emerging, particularly from interest rate rises and intensifying competition from new casino establishments opening across Asia”. Since the global financial crisis, interest rates have risen, resulting in consumers reducing their spending on entertainment, including in casinos.
There may be some substitution between spending on gambling and spending on food and beverages in casinos. “Gaming machine revenue is expected to hold up better than table betting, due to the smaller bets required for coin machines,” Shulman adds. Competition from new casinos established in Macau and Singapore, and proposed by some other countries in Asia, is expected to be fierce, particularly for international high rollers. Macau's growing power as a global gambling centre may be reduced, however, by new restrictions from the Chinese Government on the minimum gambling age and travel to Macau.
Growing competition in the Casinos industry in Australia, both domestically and internationally, is forcing greater investment into casinos and the attached food and accommodation to attract people of all levels of income. Crown's pursuit of developing a second casino in Sydney in particular is arousing a lot of attention, and if successful is expected to lead to even more success for the industry leader. The Casinos industry has a high level of market share concentration. Currently, the top four operators (which operate eight casinos in total) are Crown Limited, Echo Entertainment Group and SKYCITY Entertainment. Following significant industry consolidation in 2007, Crown and Echo's dominance in the industry is not expected to diminish in the next five years.
For more information, visit IBISWorld’s Casinos report in Australia industry page.
Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau
IBISWorld industry Report Key Topics
The Casinos industry includes revenue from table games (e.g. blackjack), gaming machines and associated entertainment and accommodation facilities directly owned or operated by casinos.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.
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