Fitch Report Bleak

01/02/2009		Fitch Report Bleak
Home History Games News Dictionary		Despite reports by some sources that deem the new Obama administration will help in bringing the US economy out of the recession, other reports such as one published by the Business Wire this week paint a much bleaker future for the financial woes of the world. Fitch Ratings agency based out of America has published some disturbing numbers in terms of when the economy, and specifically, the gambling industry can expect some respite from the money pains. According to the new report, the earliest the industry can expect an opportunity to recover is 2010. There’s no mincing the facts: “Following one of its most challenging years in recent history, the U.S. gaming industry will remain under significant pressure in 2009, with a recovery unlikely until 2010," the publication reports. Taking into account facts such as the steepest loss marked by the Gross Domestic Product (GDP) since the 1940’s as well as increasing numbers in unemployment, Fitch has published a report backing up the fears of many in the online casino community. The predictions include a continual dip in consumer spending by 1.6 percent through the year of 2009. Real estate, equity prices, and personal income restrictions are all major contributions to the lack of change that will allow a comeback for the gambling and recreational industries. Despite the pessimistic tone of the Fitch report, it also included the findings that visitations to internet casinos did not drop as severely as some had feared; rather the spending per visit dropped during 2008. Fitch also thinks that local casinos will fare better than major destination sites such as Atlantic City and Las Vegas, whose income relies primarily on out-of-town visitors.

01/02/2009

Fitch Report Bleak

Despite reports by some sources that deem the new Obama administration will help in bringing the US economy out of the recession, other reports such as one published by the Business Wire this week paint a much bleaker future for the financial woes of the world.

Fitch Ratings agency based out of America has published some disturbing numbers in terms of when the economy, and specifically, the gambling industry can expect some respite from the money pains. According to the new report, the earliest the industry can expect an opportunity to recover is 2010. There’s no mincing the facts: “Following one of its most challenging years in recent history, the U.S. gaming industry will remain under significant pressure in 2009, with a recovery unlikely until 2010," the publication reports.

Taking into account facts such as the steepest loss marked by the Gross Domestic Product (GDP) since the 1940’s as well as increasing numbers in unemployment, Fitch has published a report backing up the fears of many in the online casino community. The predictions include a continual dip in consumer spending by 1.6 percent through the year of 2009. Real estate, equity prices, and personal income restrictions are all major contributions to the lack of change that will allow a comeback for the gambling and recreational industries.

Despite the pessimistic tone of the Fitch report, it also included the findings that visitations to internet casinos did not drop as severely as some had feared; rather the spending per visit dropped during 2008. Fitch also thinks that local casinos will fare better than major destination sites such as Atlantic City and Las Vegas, whose income relies primarily on out-of-town visitors.