... believes long-term same-store growth in U.S. bricks-and-mortar regional gaming revenues will remain challenging. We attribute this pessimism to longer term structural macroeconomic and secular factors. Notable factors include saturation across regional markets; stagnant wages among the lower tier players; reprioritization of disposable income; proliferation of online/social gaming; potentially lower propensity to gamble among younger generations; and lower readiness for retirement by baby boomers. Mature Sector: The U.S. regional gaming supply has largely met demand, with most states now having some form of casino-based gambling. Only a handful of states that have meaningful prospects of legalizing casinos over the next several years (e.g. Kentucky, New Hampshire) remain, with Texas a longer term possibility. Results could be lackluster even if more states allow casinos, as is the case in Ohio, which we estimate cannibalized roughly one-...
