EY!10: Adam Rosenberg from Goldman Sachs analyzed investments in the gaming industry

During his talk, the executive commented on the trends of the capital markets in the gaming industry, the most important markets globally, the convergente of gaming with the new media, the perspectivas for regional growth and the investments. Rosenberg remarked that it is the first time he visits Buenos Aires, which, he assured, was a sign of the importance that this market is having together with South America.

He assured that strategical transactions have been stopped due to the worldwide crisis. With regards to US, the two main markets -Las Vegas and Atlantic City- have suffered their effects, although they are already showing recovery signs.

“It is remarkable the fact that the research made show that Las Vegas keeps its level of visitors, although it is true that people spend less”, he commented. “Besides, Atlantic City keeps on being problematic, because it also suffers growing regional competence”.

Another key point in the US gaming industry is comprised by tribal gaming, whose incomes have multiplied in latest years. Those complexes, as well as commercial ones, count with possibilities of financing.

Many regions are experimenting regulatory changes, specially with regards to online gaming. Rosenberg explained that the current debate in the US is focused in the way in which it must be regulated, if at a state or federal level. Besides, there is a dilemma to define the competent authority: lotteries or casinos.

When talking about Central America, the Caribbean and South America, he remarked that some of the historical companies in the gaming sector have not arrived to the region yet. “It is changing. A good example is what is going on in Jamaica, and I think it could be replicated”.

Rosenberg expressed that each region focuses in different areas and gaming sectors. Central and South America are mainly based in traditional and slot gaming, and, according to the specialist, the biggest market in this aspect is Mexico.