Casino and Casino-style Gambling - US - November 2006

SCOPE AND THEMES
What you need to know
Definition
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Casino industry expansion grows market
Customers retain power in determining growth
International markets lead to new growth opportunities
Gulf Coast hurricanes affect Southern market
Television renews gaming popularity among youth
Visiting a casino is one of America’s most popular forms of leisure and entertainment
Who visits casinos
Who does not visit casinos
Amount spent
Type of gambling activities engaged in, attitudes towards gambling, and what would make you visit more often
Online gambling on the rise
Consolidation at the top of the industry, but competition still strong
Future trends and forecast
MARKET DRIVERS
Introduction
Internet penetration
Figure 1: U.S. broadband household projections, 2000-10
Penetration of PCs gives gaming access to under-21s
Figure 2: Household ownership of personal computers, 2001-05
Aging population is good for the industry
Figure 3: Population by age, 2002-12
MARKET SIZE AND TRENDS
Figure 4: Total U.S. casino and casino-style gambling revenue, at current and constant prices, 2001-06
MARKET SEGMENTATION
Figure 5: Casino revenue by type of gaming facility, 2004 and 2006
Commercial casinos
Figure 6: Commercial casino revenue, at current and constant prices, 2001-06
Figure 7: U.S. commercial casino participant states, by region, December 2005
Figure 8: Top 20 U.S. casino markets by annual revenue, 2005
Tribal casinos
Figure 9: Tribal casino revenue, at current and constant prices, 2001-06
Online casinos
Figure 10: Online casino revenue, at current and constant prices, 2001-06
Racetrack casinos (racinos)
Figure 11: Racetrack casino revenue, at current and constant prices, 2001-06
Figure 12: Number of racetrack casinos and year of legalization, by state, December 2005
Card rooms
Figure 13: Card room revenue, at current and constant prices, 2001-06
GEOGRAPHIC DISTRIBUTION
Geographic locations
Figure 14: States that participate in casino gambling, December 2005
Top casino market areas
Las Vegas
Atlantic City
Gulf Coast & Mississippi River
Chicagoland
SUPPLY STRUCTURE
Introduction
Consolidation narrows the market
International appeal
Katrina creates boom
Continued reinvention
 COMPANIES AND BRANDS
Figure 15: Top U.S. casino operator revenue, 2004 and 2006
 SUPPLIER PROFILES
Harrah’s Entertainment, Inc.
MGM Mirage
Boyd Gaming Corp.
Trump Entertainment Resorts, Inc.
Isle of Capri Casinos, Inc.
Foxwoods Resort Casino
Mohegan Sun Resort and Casino
Penn National Gaming, Inc.
Station Casinos, Inc.
Aztar Corporation
Ameristar Casinos, Inc.
 OTHER COMPANY PROFILES
ADVERTISING AND PROMOTION
 OVERVIEW OF INDUSTRY PRACTICES
Comps and the casino industry
Destination: entertainment
Literature and the slots
NASCAR and Vegas
Edgier image targets younger gamblers
Targeting Hispanics
 COMPANY ADVERTISING PROFILES
Harrah’s Entertainment
MGM Mirage
Penn National Gaming, Inc.
Boyd Gaming Corp.
Foxwoods Casino
Mohegan Sun and Resort Casino
Trump Entertainment Resorts, Inc.
Isle of Capri Casinos, Inc.
Station Casinos, Inc.
Aztar Corp.
Ameristar Casinos, Inc.
THE CONSUMER
Introduction
Summary
Who visits casinos
Who does not visit casinos
Frequency of visiting
Amount spent
Type of gambling activities engaged in, attitudes towards gambling, and what would make you visit more often
Casino visitors
Figure 16: Visited a casino in the past year, by gender, May 2005-June 2006
Figure 17: Visited a casino in the past year, by age, May 2005-June 2006
Figure 18: Visited a casino in the past year, by income, May 2005-June 2006
Figure 19: Visited a casino in the past year, by presence of children, May 2005-June 2006
Figure 20: Visited a casino in the past year, by region, May 2005-June 2006
Figure 21: Visited a casino in the past year, by Hispanic heritage and nativity, May 2005-June 2006
Figure 22: Visited a casino in the past year, by cohort, May 2005-June 2006
Where do you go to gamble
Figure 23: Visited a casino in the past year, by race/ethnicity, May 2005-June 2006
Number of casino visits in the past year
Figure 24: Number of casino visits in the past year, by gender, May 2005-June 2006
Figure 25: Number of casino visits in the past year, by age, May 2005-June 2006
Figure 26: Number of casino visits in the past year, by income, May 2005-June 2006
Figure 27: Number of casino visits in the past year, by race/ethnicity, May 2005-June 2006
Types of casinos visited
Figure 28: Types of casinos visited in the past year, by gender, October 2006
Figure 29: Types of casinos visited in the past year, by age, October 2006
Money spent on last casino visit
Figure 30: Money spent on last casino visit, by gender, October 2006
Figure 31: Money spent on last casino visit, by age, October 2006
Figure 32: Money spent on last casino visit, by income, October 2006
Figure 33: Money spent on last casino visit, by race/ethnicity, October 2006
Figure 34: Money spent on last casino visit, by region, October 2006
Games played and activities engaged in at casinos
Figure 35: Games played at casinos, by gender, October 2006
Figure 36: Games played at casinos vs. online casinos, October 2006
Figure 37: Other activities engaged in at casinos, by income, October 2006
Attitudes towards gambling
Figure 38: Attitudes towards gambling, by gender, October 2006
Figure 39: I would visit casinos more often if..., by age, October 2006
Why people don’t visit casinos
Figure 40: Reasons for not visiting a casino, October 2006
FUTURE AND FORECAST
 FUTURE TRENDS
Digital television promises interactivity
Figure 41: Total U.S. manufacturer wholesale sales of DTV sets and displays, at current prices, 2001-05
Young Hispanics are wireless and already gambling online
Three U.S. gambling destinations—the boardwalk, the desert—and the Gulf Coast?
Younger players boost online sector
 MARKET FORECAST
Casino and casino-style gambling
Figure 42: Forecast of total U.S. casino and casino-style gambling revenue, at current and constant prices, 2006-11
Commercial casinos
Figure 43: Forecast of U.S. commercial casino revenue, at current and constant prices, 2006-11
Tribal casinos
Figure 44: Forecast of U.S. tribal casino revenue, at current and constant prices, 2006-11
Online casinos
Figure 45: Forecast of U.S. online casino revenue, at current and constant prices, 2006-11
Racetrack casinos
Figure 46: Forecast of U.S. racetrack casino revenue, at current and constant prices, 2006-11
Card rooms
Figure 47: Forecast of U.S. card room revenue, at current and constant prices, 2006-11
Forecast factors
APPENDIX: TRADE ASSOCIATIONS