While the economy may be in a downturn, it appears that the gambling market is doing just fine.
A recent report on revenues for the Rank Group showed that the company actually saw revenues increase by 3.4% to £600.5million for per 12 month period ending on June 30 of this year.
The Rank Group is the company currently in charge of both the Grosvenor Casino and the Mecca Bingo brands.
The Grosvenor Casino currently has 37 outlets in the UK and growth there was a big factor in their overall growth.
Revenues there increased by 4.2% to bring in £255.8million. In addition, the company’s online business saw increases of 20.8% to bring in £77.7million.
The company has been growing even further. They have been buying up casinos from Gala Casinos as of late in a deal that will be worth up to £205million.
They are working to become the leading operator in Britain. Malaysia’s Genting currently holds that spot but if the Rank Group receives regulatory approval, they will drop to the number two spot.
The increase in revenues by the Rank Group appears to be right in line with a report of growth in UK’s gambling revenues from last year.
PricewaterhouseCoopers stated that worldwide gambling revenue as a whole would increase annually by around 10% until 2015.
Global revenues of around $117billion in 2010 and that is expected to grow to $183billion by 2015. The online market in the UK alone is worth $1.2billion a year, making the UK online gambling market the largest in the world.
Rank Group looks to continue customer growth by drawing in younger customers to their outlets and away from venues such as nightclubs and restaurants. In addition, they believe that regulatory changes will benefit the company, including a change in duty rates on bingo that will see a drop from 20% to 15%.
The growth in UK gambling is impressive considering both the economic downturn and the fact that many gamblers are going to destinations such as Macau to gamble. Macau has overtaken destinations such as Vegas for gambling and many US casinos have been sustaining losses for years.
While the UK may not be on the same level as a Macau, other countries may want to look closer at how the country has been able to grow during a time where many are losing substantial money in casino operations.