James Packer Betting Heavily On U.S. Gambling Market
The state of the U.S gambling market has been the topic of much debate in the last few years. The online gaming sector has been under fire even though it has been up and running for a short time. The disappointing revenues from the three states offering legal internet gambling have resulted in many insiders and outsiders to the casino industry to question the future expansion of gambling in the U.S.
Back in May we covered the Rubin browns report that revealed that commercial and tribal casino sin the U.S generated $66.3 billion in revenues for the year 2013. This was an increase of 1.6% from 2012. While the increase is seemingly small it is seen by many as a positive sign that the overall U.S. economy and gambling industry with it is slowly seeing a recovery from the global economic recession.
Despite being the most valuable of the three states offering legalized online gambling. New Jersey has had a lot of teething problems which culminated in last month’s announcement that another one of the remaining Atlantic City casinos will be closing its doors. With the closing of the Showboat Casino Atlantic City may well land up with only nine of the 12 casinos it started with at the beginning of the year.
With all this in the background there are still major gambling players that are betting heavily on the U.S market recovering and even expanding. One such player is the Australian Casino mogul James Packer who is once again trying his luck in the U.S market.
Packer’s Crown Resorts have purchased a vacant site on the Las Vegas Strip in which it plans to build a new development that will be completed by 2018. Crown forked out $280 million for the controlling interest of the 35 acre site which was home to the demolished Frontier Casino. Packer has interests in all the gambling hubs in the globe including Macau and he believes that Vegas might well attract some of the VIP players from Macau that are looking to other options to spend their millions.
Packer was upbeat and even nostalgic when explaining why he is back trying his luck in the U.S after failing in the past. He said,” You can’t be in the gaming industry and not have a special reverence for Las Vegas – that’s where it all began. As we have built Crown Resorts into a thriving international company with successful casino ventures in Australia, Macau, and London, we’ve always kept our eye on Las Vegas. While we fell short in past attempts to enter that market, we now have the ideal opportunity.”