|SIC Codes:||7011 7948 7993|
|NAICS Codes:||721120 713290 713210 711219 711212|
Companies in this industry operate gambling facilities or offer gaming activities, including casinos, casino resorts and hotels, bingo halls, lotteries, and off-track betting. Major companies include US-based casino operators Caesars Entertainment, Las Vegas Sands, and MGM Resorts, as well as Lottomatica (Italy), SJM Holdings (Hong Kong), Tatts Group (Australia), and William Hill (UK).
Demand for gambling is driven by consumer income growth and state spending. The profitability of individual companies depends on efficient operations and effective marketing. Large operators have the financial resources to make significant investments in facilities and efficient computer operations; they may also enjoy cross-marketing opportunities. Small gambling facilities can thrive by catering to local residents, who may not be able to afford travel to such gambling centers as Las Vegas or Atlantic City. The industry is concentrated: the top 50 gaming companies hold about 60 percent of the market. The casino hotel market is even more concentrated, with the top 50 firms holding 90 percent of the market.
Gaming operators mainly provide a place or a means to play games of chance, where the odds of winning favor the "house." Popular casino games are slot machines (slots); video poker; and table games such as roulette, baccarat, blackjack, and craps (dice). The house take on slot machines varies, depending upon the denomination of the slot machine, but generally runs between 5 and 10 percent. The take on most table games may be higher, from 15 to 30 percent. State lottery games are mainly numbers games. State lotteries often retain between 30 and 40 percent of all money bet, according to the National Conference of State Legislatures.Buy Now