U.S. gambling fires ahead, but inflation concerns crimp U.K.
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The U.S. gambling industry continues to grow despite uncertainty over the economy. The U.,K. has started to see a slow down as inflation concerns gain pace. Covid shut down casinos but caused a spike in their online businesses.
There is pent-up demand for gambling in Asia. The U.S. commercial gaming revenue totaled $14.31 billion in Q1 2022. March drew in $5.30 billion. The industry is still facing headwinds from supply chain constraints, labor shortages and inflation.
Deutsche Bank has just met with managers in Las Vegas. They are optimistic about the future of the gambling industry. In the UK, the situation is more mixed. Online gambling revenue fell by 5% in the first quarter. The overall gross gaming yield fell one percent. In part, this is due to the emergence from Covid. Consumer confidence levels are at their lowest since the 1970s. UKGC says the country is now entering a different phase after a series of restrictions.
Inflation pressures, restrictions and uncertainty about personal or financial circumstances impacted online gambling revenue in the quarter. The UK consumer confidence index fell to its lowest ever score since 1974. Rank Group is cutting its forecasts for the year due to softening in its results from the end of the first quarter and expects EBIT to be in a range of GBP47 million to GBp55 million.
