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July 14, 2009
Sinking the bets
This recession has intruded on virtually every industry and individual business. Even one long-time recession-proof sector, the gambling industry, seems to have been adversely impacted by today's economy. Give us the details. Listen
Dr. Mike Walden, North Carolina Cooperative Extension economist in the College of Agriculture and Life Sciences at N.C. State University, responds:
"Well, the details are not good for the so-calling gambling or gaming industry. In fact, their revenues are down 5 percent in 2008 after adjusting for inflation. This is after coming off a string of years where their revenues were going up about 2 to 3 percent per year. Even during the last recession in 2001, we didn't see the gambling or gaming industry lose revenue. In fact, during that year, they still saw their revenues go up 3 percent. I think this indicates two things. I think certainly it indicates the strength of this recession. It has really intruded everywhere. Virtually no part of our economy has escaped. And then secondly, I think it really is indicative of the fact that consumers are dramatically cutting back. They're looking at their discretionary spending, and they're saying, hey, if this is not something I have to spend money on, I'm going to cut back because I've got to rebuild my investments. I've got to cut down on debt. And unfortunately for those working in the gaming industry, they have suffered the consequences."
Posted by Dave at July 14, 2009 08:00 AM