Casino revenue expected to increase

Nevada’s revenue is expected to increase with 7.5% over the next year thanks to the new hotel rooms and emerging technologies. Some gaming analysts believe that the increase will be bigger because new hotels are scheduled to open in that period.

Global Entertainment and Media Outlook estimated that the casino revenue in Nevada will increase to $18.2 billion by 2011. The report revealed that the revenue will increase with 11.6% this year, then with 9.6% in 2008. The opening of Palazzo by Las Vegas Sands Corp of Encore by Wynn Resorts Ltd. in 2008 will help the increase.

MGM Mirage's CityCenter is scheduled to be opened in 2009 and Boyd Gaming Corp's Echelon in 2010.Together they will bring 10,000 rooms. Bill Lerner, gaming analyst for Deutsche Bank said that these estimations can be a concern for the casino developers who wanted to build another 44,000 rooms by 2012.

Jeremy Aguero, a principal at Applied Analysis said that if the number of rooms increases so will the revenue. He said that the estimated 7.5% revenue increase would be a disappointment and that he expects the percent to be higher.

The slot machines are expected to increase the revenue with 6.9% over the next five years, which would be $11.6 billion. The revenue will grow because the slot technology centers can change the slot machines depending on their popularity.

Both Macau and the strip continued to make improvements in revenue in 2006. The city attracts 38.9 million players to the area. The report said that the Strip managed to lure such a high number of visitors because the value of the U.S dollar declined.

The gaming revenue is expected to grow with 6.7% in 2011 which means it would grow from $57.5 billion to $79.6 billion. The gaming revenue in Pacific Asia is expected to grow with 15.9%, from $14.6 billion to $30.3 billion.

The worldwide revenues are expected to grow to $144 billion by 2011.