Gaming Industry Turns in Modest Gains in '97 throughout Most of North America

2 July 1998

New York -- With only a few exceptions, regulated lottery and casino gambling posted modest advances in revenue and handle last year throughout the U.S. and Canada, all but replacing the succession of dramatic increases recorded earlier in this decade.

According to the North American Gaming Report 1998, an annual survey conducted by International Gaming & Wagering Business, most jurisdictions posted advances in at least one category during 1997, some handily, with declines occurring mostly in the pari-mutuel segment. Only seven U.S. states (Florida, Michigan, Mississippi, Missouri, New York, Pennsylvania, Rhode Island) and the Canadian province of Alberta recorded advances in every gaming category.

Of the 47 U.S. states with regulated gaming, plus the District of Columbia, 31 recorded advances in overall wagering, one less than the year prior. Nine states advanced at least 10% in 1997 (compared with 13 in 1996) and of those, six were up at least 25%. Among the more impressive advances were:

Lottery handle increases in Delaware (214.8%), Rhode Island (20.5%), and West Virginia (57.3%) were fueled by the popularity of video lottery terminals; Michigan (12.3%) and New York State (10.6%) also turned in impressive performances.

Casino handle soared in Connecticut (42.5%), the result of the new Mohegan Sun Casino.

Parimutuel advances in Ohio (33.8%), South Dakota (50.5%), and Washington State (19.3%) were all fueled by full-card simulcasting.

A dramatic 49.2% increase in handle for video gaming machines in South Carolina, which is locked in a bitter political battle over the proliferation of these devices.

Riverboat casinos in the U.S. captured industry headlines last year with large advances in three states: Missouri, 42.1%; Iowa, 20.1%; and Indiana, 169.5%. Throughout North America, ten jurisdictions posted advances in casino handle, most of them in low double digits. Nevada and New Jersey advanced as well, but only slightly at 1.9% and 2.2% respectively, which represent a significant slowdown over prior years' growth.

In the loss column, California was a notable underperformer in 1997. Lottery handle in the Golden State plunged 10.0% last year after having posted a 5.8% increase in 1996. The Wisconsin lottery also lost ground last year, recording a 10.6% drop. Illinois posted its first decline ever in casino handle of 3.2%. Nebraska held the dubious distinction of having the biggest overall decline with total handle down 10.5% in 1997, edging Wisconsin's 9.1% drop. Overall, 15 states recorded declines, eight of them in every gaming category.

Gaming results in Canada were difficult to measure, as a change in the way handle on horse racing was reported made prior year comparisons impossible. Casino gaming revenues remained strong, although handle figures are not available. As a rule, Canada's lottery industry mirrored the slowing growth trend seen in the U.S. Only Ontario, however, reported a lottery sales decline in 1997. Charitable gaming also suffered in 1997, with most provinces reporting a decline.

The state of the worldwide gaming industry will be discussed in depth at World Gaming Congress & Expo '98 scheduled to take place September 23-25 at the Las Vegas Convention Center. Seminar tracks include casino management, pari-mutuel wagering, lotteries, information technology, security, gaming as entertainment, and marketing as well as institutes and symposia.

World Gaming Congress & Expo celebrates its 12th anniversary this year during "International Gaming Week," which will be observed from September 20-26 by proclamation of Nevada Gov. Bob Miller. World Gaming Congress & Expo '98 is expected to break all records for attendance and exhibitions with over 23,000 participants from over 100 countries, and journalists representing more than 150 media outlets worldwide.

World Gaming Congress & Expo is presented annually by IGWB, International Gaming & Wagering Business, the leading business publication serving the gaming industry. The magazine is published monthly by GEM Communications, New York City.

North American Gaming Highlights: 1997

Video Lottery Terminals (VLTs) assisted in big lottery increases in three states, Delaware (214.8%), West Virginia (57.3%), and Rhode Island (20.5%).

With the opening of The Mohegan Sun, Connecticut posted a 42.5% gain in casino handle to $11.1 billion. Assisted by a strong lottery increase of 9.2%, the Nutmeg State posted an overall 37.8% gain in handle over the previous year.

South Carolina's handle grew 46% due to the growth of controversial video gaming machines.

Simulcasting accounted for large pari-mutuel gains in Ohio (33.8%), South Dakota (50.5%), and Washington State (19.3%).

Illinois' casinos posted their first ever decline in handle, 3.2%.

One of racing's few success stories hit the ground running in 1997, as Lone Star Park contributed to a 14.7% gain in pari-mutuel handle in Texas.

Riverboat casinos in Missouri dominated the state's gaming activity, posting a 39.8% increase.

New Mexico posted a strong 25.9% increase in handle due to its first full year of lottery, even as charitable gaming fell 11% and horse racing stayed even.