Online gaming platforms and casinos have seen lower revenues this year, says a Scotiabank Industry Trends report. This is mainly attributed to fiscal challenges in the economies of Europe and North America, causing consumers to use more discretion when spending.
The industry, however, expects this trend to be short-lived. Ongoing gaming deregulation and the expansion of casinos and online gaming platforms into emerging markets should rejuvenate this sector globally in coming years.
Read: Prospecting on the golf course
Markets like the U.S., western Europe and Australia are already saturated with these industries, so expansion will be focused on the Philippines, South Korea, Japan, China, eastern and central Europe, the U.K. and Russia.
Read: The cost of doing good
In the U.S., insecurity surrounding the fiscal cliff softened growth in the gaming sector this past year, but it still posted modest gains. Gambling meccas like Atlantic City and Las Vegas tell different stories: the former’s still recovering from Hurricane Sandy and the latter’s planning to renovate its convention centre.
In Canada, household deleveraging and weak consumer spending has hurt the industry, but American tourists are being attracted by the slightly weaker Canadian dollar.