The growth of Casino Games is expected to continue to increase globally as new markets and new developments are explored. Companies in this arena are looking both domestically and internationally for continued growth through various channels such as new and existing property development, consolidation strategies as well as technology and programs Casino Games to improve the overall gaming experience.

Worldwide Casino Games revenues are expected to reach over $100 billion in 2009, according to a report by PricewaterhouseCoopers. The report entitled, ‘Global Entertainment and Media Outlook: 2005-2009 predicts that the United States will maintain its top ranking as the largest casino market reaching approximately $64 billion in revenues in 2009, but notes that Asia, especially with the development of the Macau region, will be the fastest growing market moving from $8.8 billion in 2004 to near $18.5 billion in 2009. As these markets continue to develop, casino and gaming companies evolve and diversify their growth strategies to reap the rewards of industry expansion.


Improving the Gaming Experience
Increasing revenue from existing customers and growing this base to new levels is a popular strategy amongst casinos. As competition tightens, many casino resorts look to creative methods of improving the gaming experience and increasing their overall customer draw. We use branded online and mobile games as the draw for players. We brand online and mobile casino games such as slots and poker with the Casino Games brand and build an online marketing strategy around the new gaming site."

Keeping in line with current legislation, with an eye on what the future may hold in terms of new regulations, is important for companies in this industry. In light of this MGN Technologies has developed a gaming platform that provides legal options for casinos to explore the online gaming world. "The games are play-for-free or play-for-prizes and not gambling so they are legal. We don't offer gambling in the United States. Players can win cash and prizes from a casino by entering sweepstakes drawings from earning points. It's an opportunity for land-based casinos to get into online gaming legally and compliantly. Some day in the future when land-based casinos can host online gaming our customers will be uniquely prepared," describes Jensen.

Harrah's Entertainment (NYSE: HET) has a significant focus on improving the gaming experience for their customers through their loyalty and reward programs, which have become an important part of the Company's revenue strategy, in particular with their acquisition of Caesars Entertainment. Harrah's spokesman David Strow explains, "With the Caesars transaction the flexibility of the Total Rewards program increases exponentially. We believe that the system of Total Rewards will become much more appealing for Casino Games customers, which helps increase play, but it also means that the Caesars properties will be generating more business than ever before because now you have an expanded database of customers from around the country who are now being drawn to these properties." The implementation of the Total Rewards program is currently being implemented across the Caesars properties and the Company expects completion to occur over the next several months.

Property Development
A key driver of growth for many casinos entails the continued development of new and existing properties in both domestic and foreign markets. Boyd Gaming's (NYSE: BYD), Rob Stillwell, Vice President Corporate Communications explains, "At any given time we are expanding our existing product portfolio, and building completely brand new products." This dual strategy has been recently exemplified by the January completion of their 18 month, $170 million expansion of the Blue Chip Casino Hotel in Indiana, Boyd's most successful riverboat operation in the Company's central region, as well as their December 22nd opening of a brand new $600 million property in the Company's Las Vegas locals business segment, which is the SouthCoast Hotel and Casino. In fact, according to Stillwell Boyd made the strategic decision to further develop this property even before its completion.

Key factors to Boyd's entrance into new markets and to development decisions include: a stable tax environment, and a solid regulatory environment. "In states that do decide to legalize gambling, we prefer to be in a situation where the State is really excited about its opportunities as opposed to controversy and opposition found in some regions," states Stillwell.

Harrah's Entertainment Inc. looks to the identification and entrance into new markets as a key component of their growth strategy according to David Strow, "Harrah's is primarily internationally focused which we see as our largest potential growth channel. Currently Harrah's is pursuing bids in countries such as the Bahamas, Spain, Slovenia, with our largest proposal planned for Singapore."

Mergers and Acquisitions
The Casino Games environment continues to see consolidation as a method for overall expansion. Harrah's recent acquisition of Caesars is a solid example of the potential benefits associated with acquisitions within this arena to include access to a larger customer base, greater market presence, new channels for revenue growth, along with the power behind a credible and established portfolio. "We have two primary growth channels; one is derived from our acquisition of Caesars. We believe that there is a tremendous amount of synergy potential, Casino Games not just in the traditional sense of cost savings, but more in terms of revenue generation potential. We believe that the tools and systems and strategies that Harrah's has developed over the years, such as our Total Rewards customer-loyalty program, once implemented into the Caesars properties can generate an even greater revenue production from these properties than ever before," describes Strow.

Innovation in Gaming Technology
Technological innovation has played a key role in the evolution of casinos and has contributed to the growing popularity of the gambling sector. Kirsten Clark, Director of Marketing for Shuffle Master, Inc (NASDAQ: SHFL), the top specialty casino game provider, sees two key drivers to the growing participation in Casino Games; a resurgence in table game popularity and the introduction of multiple content delivery systems. "Table games have become much more popular over the last several years and Shuffle Master has played a very important role in this not only through our shuffling technologies that help casinos speed up game play and make it more secure, but also by providing new table game content. The next generation of gamers consisting of the younger demographics, are players who want a more dynamic gaming opportunity at a table game. As a result there are a lot of new proprietary games in the market that are protected by intellectual property and Shuffle Master is responsible for approximately 70% of this content including three of the top five titles," explains Clark.

Another key factor driving the escalation in gaming participation has been seen through the growth of multiple content delivery systems. Of particular interest as of late has been the potential for wireless technology to be introduced into the casino environment and with the Nevada legislation recently adopted enabling the use of wireless gaming devices within public areas of casinos, many are speculating as to the potential growth impact this will create moving forward. While details outlining acceptable technology has yet to be determined, it is understood that security systems will be implemented to ensure that these wireless devices cannot be used outside of casino boundaries and that they are capable of preventing the use by minors. This legislation opens the doors for casinos, game developers and players as it provides for new revenue channels, and new gaming experiences.

"In the future we feel wireless gaming will be a very important growth driver as an alternative content delivery system providing both the casino and player with benefits that are not currently available on a live game. The wireless platforms that are currently being developed we feel will become an important part of casinos of the future. This technology will see all of the game activity automatically being recorded enabling the casino to go in at any time and know exactly how many people are playing on their wireless devices, what their win per day, per hour etc is. It gives casinos so much more information at their fingertips," explains Clark.

As the gaming industry continues to evolve casinos, resorts and game developers are presented with a growing number of opportunities to expand their existing channels and pursue new avenues both domestically and internationally. While legislation is often a market barrier within the gambling industry, companies have implemented flexible and adaptive programs to take advantage of each new environment and each new Casino Games challenge, with the ability to adjust moving forward as laws change and markets develop. With the introduction of wireless technology and online opportunities, what has already proven to be a dynamic sector, appears to be headed towards continued growth.