Author: Mintel Group Ltd.
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Casino and Casino-style Gambling - US - June 2014
Scope and Themes
 
What you need to know 
Between 2009 and 2014, gaming revenues at commercial and tribal casinos are estimated to increase by 9% at current prices to $66 billion and decline 2% at inflation-adjusted prices. After contracting during the economic downturn, revenues in 2012 exceeded 2008’s prerecession level of $63 billion. Consumers have returned to the casinos, but growth has been tepid. This may be due to over-expansion or saturation as revenues shift from one area to another rather than reflect growth in the market. Future growth will rest on the shoulders of adult men aged 21-34, who are more likely to be regular casino visitors and to spend lavishly, on the success (or failure) of online gaming, and on revenue growth attributable to on-premises nongaming activities and spending.

This report builds on the analysis presented in Mintel’s Casino and Casino-style Gambling – US, December 2012, as well as the January 2011, January 2010, November 2008, and November 2006 reports of the same title. 

Definition
For the purposes of this report, Mintel has used the following definitions: 

●	The “casino industry” includes commercial casinos, tribal casinos, and racetrack casinos (sometimes referred to as “racinos”). This includes table games like poker, as well as electronic gaming devices (EGDs); Class II games such as bingo; and Class III games such as slot machines, blackjack, craps, and roulette. Card rooms are excluded from this report.
●	This report focuses on bricks and mortar casinos and the companies that operate them. Although online gambling is discussed, this report does not provide extensive analysis of the online gambling industry. At the time of this writing, most forms of online gambling are illegal for operation in the US.
●	Nongaming revenues at casinos are discussed but are excluded from the market size and segmentation totals. 

Value figures throughout this report are at rsp (retail selling prices) excluding sales tax unless otherwise stated.

Data sources
Sales data
●	Market Size, Segmentation, and Forecast section: based on data from AGA (American Gaming Association), State Gaming Regulatory Agencies, and NIGC (National Indian Gaming Commission) and includes gross gaming revenues only. 
●	Leading Companies: based on company SEC (Securities and Exchange Commission) filings. 

Consumer survey data
For the purposes of this report, Mintel commissioned exclusive consumer research through GMI to explore consumer usage of, attitudes, and behaviors toward casinos and casino-style gambling. Mintel was responsible for the survey design, data analysis, and reporting. Fieldwork was conducted in March 2014 among a sample of 1,931 adults aged 21+ with access to the internet.

Mintel selects survey respondents by gender, age, household income, and region so that they are proportionally representative of the US adult population using the internet. Mintel also slightly over-samples, relative to the population, respondents that are Hispanic or Black to ensure an adequate representation of these groups in survey results and to allow for more precise parameter estimates from our reported findings. Please note that our surveys are conducted online and in English only. Hispanics who are not online and/or do not speak English are not included in our survey results.

Mintel has also analyzed data from Experian Marketing Services, using the NHCS (Simmons National Hispanic Consumer Study). 

The Experian Marketing Services, Simmons NHCS was carried out during November 2012-December 2013, and the results are based on the sample of 22,703 aged 21+, with results weighted to represent the US adult population. 

Additional data from Experian Marketing Services is also included for trending purposes:

●	Experian Marketing Services, Fall 2013 Simmons NHCS Adult Study 12-Month.
●	Experian Marketing Services, Fall 2011 Simmons NHCS Adult Study 12-Month.
●	Experian Marketing Services, Fall 2009 Simmons NHCS Adult Study 12-Month.
●	Experian Marketing Services, Fall 2007 Simmons NHCS Adult Study 12-Month.
●	Experian Marketing Services, Fall 2006 Simmons NHCS Adult Study 12-Month.

While race and Hispanic origin are separate demographic characteristics, Mintel often compares them to each other. Please note that the responses for race (White, Black, Asian, Native American, or other race) will overlap those that also are Hispanic, because Hispanics can be of any race.

Abbreviations and terms
Abbreviations
The following is a list of abbreviations used in this report: 

AGA | American Gaming Association
CBO | Congressional Budget Office
CPI | Consumer Price Index
DPI | Disposable personal income
GDP | Gross domestic product
NASPL | North American Association of State and Provincial Lotteries
NHCS | National Hispanic Consumer Study (Experian Simmons)
NCSL | National Conference of State Legislatures
NIGC | National Indian Gaming Commission
rsp | Retail selling price
SEC | Securities and Exchange Commission
SOV | Share of voice
TSI | The Traveler Sentiment Index™
USTA | US Travel Association

Terms
Generations are discussed within this report, and they are defined as: 

World War II/Swing generation | Members of the WWII generation were born in 1932 or before and are aged 82 or older in 2014. Members of the Swing Generation were born between 1933 and 1945 and are aged 69-81 in 2014.
Baby Boomers | The generation born between 1946 and 1964. In 2014, Baby Boomers are between the ages of 50 and 68.
Generation X | The generation born between 1965 and 1976. In 2014, Gen Xers are between the ages of 38 and 49.
Millennials* | The generation born between 1977 and 1994. In 2014, Millennials are between the ages of 20 and 37.
iGeneration | The generation born between 1995 and 2007. In 2014, iGens are between the ages of 7 and 19.
Emerging generation | The newest generation began in 2008 as the annual number of births declined sharply with the recession. In 2014 members of this as-yet unnamed generation are younger than age 7.

* also known as Generation Y or Echo Boomers

In order to provide an inflation-adjusted price value for markets, Mintel uses the CPI to deflate current prices. The CPI is defined as follows: 

CPI

The Consumer Price Index is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

The CPI and its components are typically used to adjust other economic series for price changes and to translate these series into inflation-free dollars. Examples of series adjusted by the CPI include retail sales, hourly and weekly earnings, and components of the national income and product accounts. In addition, and in Mintel reports, the CPI is used as a deflator of the value of the consumer’s dollar to find its purchasing power. The purchasing power of the consumer’s dollar measures the change in the value to the consumer of goods and services that a dollar will buy at different dates. 

The CPI is generally the best measure for adjusting payments to consumers when the intent is to allow consumers to purchase, at today’s prices, a market basket of goods and services equivalent to one that they could purchase in an earlier period. It is also the best measure to use to translate retail sales into real or inflation-free dollars.

Based on Bureau of Labor Statistics definition.

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