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The Future Of Online Casinos Discussed By Moody’s

The announcement that the Moody’s Investors Service has recently made at the end of June 2012 comes to shed the light on the soon-to-come online casino future. It seems that the United State’s economy, its stagnation and also the apparition of several new casinos are all negatively affecting the casino industry as a whole. Instead of adding more value to the industry, these newly founded casinos such as Resorts World in Queens, New York, Revel in Atlantic City or Rivers Casino in Des Plaines, Ill., near Chicago are in fact taking market share from their older competitors. They are not, as expected, helping grow the gambling market.

Moody’s Investors’ Service have used a special comment named “A More Cautious Consumer Steps Away from the Casino” to highlight the fact that several existing gambling companies could be severely affected by these changes. CityCenter Holdings, Caesars Entertainment Corp., or Cannery Casino Resorts LLC all located in Las Vegas are just a few of these venues that are prone to suffer. They cont among those companies that are either facing some high leverages or they are looking at some near-term debt maturities which are going to have to be covered or refinanced one way or the other. The gaming industry rebound 2012 reports do not therefore look very good.

The Moody’s report announced the fact there is a stalling in the improvement of the American gaming revenues. The momentum has been announced as having started in March and then the month of May witnessed some serious decreases in terms of gaming revenue. Adding up the weakness in the confidence of the clients and the employment and also retail sales, the much expected gaming industry rebound 2012 seems to be prone to stall for a long time from now on.

Online Casino Future In The U.S. Placed Under A Question Mark

Moving deeper into the story, it seems that the official gaming revenue Atlantic City figures are displaying a fall of 9.5 percent for Revel in May – which was actually also the first month of operations for this facility. Moving toward New York City, the figures here seem to be talking about the opening of the Resorts World at Aqueduct Racetrack during last fall, things do not seem to be looking any better.

The irony that Moody specialists have pointed out refers to the Las Vegas Strip, which seems to be resisting quite well to all the changes and pressure. This is occurring despite of the fact that, during the recession. The Las Vegas Strip was one of the gambling markets that have been severely affected. Moreover, according to the same Moddy’s report, changes such as the solid convention and event calendar or the supply expansion that is going to be more limited, plus the decreasing gasoline prices are all considered to be offering support for a continuous modest growth.

Therefore, the future of online casinos seems to be a reserved one, especially due to the weakened consumer data that is to be considered a genuine concern.