Canadian companies are eyeing up US Casinos

Back in the 1960s American gamblers had to travel to Atlantic City or Las Vegas to enjoy a legal casino but these days individual states have realised the potential for income from these establishments and now  there are nearly 450 casinos spread over 12 states as well as another 400 or so on Indian reservations to say nothing of electronic gaming operators and card rooms which also number more than 10,000 and according to the Nelson A Rockefeller Institute of Government there are 25 states that are either adding or expanding gambling operations. A typical example is Kansas where operators have been selected to run four casinos which will bring in some $80 million of initial payments in addition to 27% of the future revenues which will help considerably to reduce a $400 million annual budget deficit. As a result of this expansion and the fact that established operators such as Harrah’s and MGM are suffering from high debt and reducing income, financial institutions from North of the border (Canada) are showing an interest. Toronto based companies Onex Corp and Brookfield Asset Management Inc are both showing interest and Clairvest holds a 33% stake in the Kansas Casino as well as a 40% stake in the casino complex near to Chicago O,Hare airport but perhaps the strangest one is the recent announcement that the Ontario Teachers’ Pension Plan has purchased Camelot Group PLC who operate the UK National Lottery. A spokesman from the Pension Plan was quick to add that it had no intention of getting into the casino business but did like the idea of a steady income from lotteries. H2 Gambling Capital which is a UK research firm is forecasting that gambling in its traditional form will increase at about 4% per annum but even faster growing will be online gambling which is forecast to rise at around 11% per annum and if we ever see the repeal of the laws banning online casinos it could grow even faster.