Riviera Holdings - Competitors

Riviera Holdings Competition

Now Viewing Riviera Holdings's competition in: Gambling Operations (primary)

Recent Developments

Smoke Clearing the Casino Floor - Casinos in Illinois have posted double-digit revenue declines during the first eight months of 2008; many blame the state's smoking ban that took effect January 2008. Illinois' January-through-August adjusted gross receipts were down 18 percent from the same period in 2007, falling to $1.09 billion, and the number of patrons tumbled by almost 1 million. Studies show that smokers gamble more money than nonsmokers, that smoking sometimes lower gambling inhibitions, and that smoke breaks can lead gamblers to reconsider their bets. Atlantic City went smoke-free in October 2008.

Vegas Airport Expansion Questioned - Nevada's gaming revenues were down nearly 13 percent in July 2008 compared to July 2007, according to the state's gaming control board. And for the first seven months of 2008, air traffic into the Las Vegas airport was down 4 percent. Declining consumer demand coupled with high fuel prices have caused numerous airlines to cut services to Las Vegas. As of September 2008, one of the airport's largest operators, US Airways, offered 81 flights to Vegas, down from 141 less than a year ago. Some want the airport's $1.6 billion planned expansion to be reevaluated.

California's American Indian-Owned Casinos Seeing Slow Growth - California's tribal casinos' revenue gains were slight in 2007, according to Analysis Group's Indian Gaming Industry Report. The state's 60 tribal-owned casinos generated $7.8 billion in 2007, a paltry 1.6 percent increase from the $7.6 billion generated in 2006. The study predicts that the slow growth trend will continue through 2008, and attributes it to the economy and public policies designed to restrict the industry, such as the cap on the number of slot machines tribes are allowed to operate.

Competitive Landscape

Growth in consumer income and state spending has driven expansion of the US gambling industry. The profitability of individual companies depends on efficient operations and effective marketing. Large operators have the financial resources to make large investments in facilities and efficient computer operations, and have cross-marketing opportunities. Small gambling facilities can thrive by catering to a local clientèle. The industry is fairly labor-intensive: annual revenue per employee is $90,000.

Full Industry Overview For Gambling Operations

Gambling Operations Industry Forecast

from Hoover's/D&B subsidiary First Research

US personal consumption expenditures for participant amusements and pari-mutuel net receipts, which includes gambling operations, are forecast to grow at an annual compounded rate of 5 percent between 2008 and 2013.

Consumer Spending Growth on Participant Amusements Uneven

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.