A repeat of last year's growth in the global gaming sector hinges on affordable sources of capital resurfacing soon for the industry's mega-projects, according to Ernst & Young's report Reviewing the market: The 2008 Global Gaming Bulletin.

The report shows that the opening of new jurisdictions to gaming as well as growing consumer demand for destination gaming and plentiful development capital for new projects led to a second year of stellar growth for the global gaming sector in 2007. However, with global capital markets still reeling from the effects of credit crisis, the availability of capital is vital to the gaming sector's growth in 2008.

Now in its 26th year, Ernst & Young's annual Gaming Bulletin reports that Macau cemented its position last year as the world's premier gaming destination by posting US$10.2 billion in revenue, an increase of 47 percent on 2006. Las Vegas casino revenues were US$6.8 billion for 2007, only 1.5% up on 2006 revenues.

The report points to other challenges faced by the global gaming sector. In 2007, for example, several countries including the UK and Australia imposed smoking bans in casinos. Also, partial smoking bans have been imposed in gaming properties in Nevada and Atlantic City, New Jersey, USA. These bans have resulted in lower gaming revenues, but overall Ernst & Young sees more positives than negatives for the sector.

"With new destination gaming centers opening around the globe and technological advances such as electronic table games and wireless betting units enhancing consumers' casino experiences, we see potential for future revenue growth in the sector," said Tom Roche, Global Gaming Services Leader, Ernst & Young. "However, the sector's long-term outlook very much depends upon the industry's continued access to affordable capital to finance the building of the mega casino/entertainment/retail projects that consumers seem to crave," he added.
The 2008 Global Gaming Bulletin is a 132-page report, which includes a review of the global gaming sector's major highlights in 2007, as well as detailed analysis of gaming in Australia, France, Germany, Latin America, Macau, Russia, Spain, UK, US and the US Native American (tribal) gaming sector.
About Ernst & Young's Global Real Estate Center

Today's real estate industry must adopt new approaches to address regulatory requirements and financial risks, whilst meeting the challenges of expanding globally and achieving sustainable growth. Ernst & Young's Global Real Estate Center brings together a worldwide team of professionals to help our clients achieve their potential -- a team with deep technical experience in providing assurance, tax, transaction and advisory services. The Center works to anticipate market trends, identify the implications and develop points of view on relevant industry issues. Ultimately it enables us to help our clients meet their goals and compete more effectively. It's how Ernst & Young makes a difference.

About Ernst & Young

Ernst & Young is a global leader in assurance, tax, transaction and advisory services. Worldwide, our 130,000 people are united by our shared values and an unwavering commitment to quality. We make a difference by helping our people, our clients and our wider communities achieve potential.
Ernst & Young refers to the global organization of member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.