Gaming industry outlook good

Wednesday, Dec. 8, 2004 | 10:46 a.m.

The gaming industry is expected to consolidate further with a particular emphasis on expansion in Las Vegas, according to an 2005 industry outlook published by bond rating company Fitch Ratings.

"With waning interest in regional markets, Fitch believes Las Vegas will continue to become a more prominent market for expansion in 2005 due to its strong demand fundamentals and favorable regulatory environment," the agency said. "Year-to-date growth has exceeded expectations, with visitor volumes, room rates and casino revenues hitting record highs and property margins widening significantly."

Industry consolidation will continue next year, with mid-size companies following moves by larger companies to economize, Fitch said.

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