With voters approaching expansion in Rhode Island and Maryland, Moody’s Investors Service has a warning:
While certain casinos in Rhode Island and Maryland stand to gain, the increase of gaming supply, in whatever form it takes, will not necessarily attract more gamblers. We believe this “keeping-up-with-the-Joneses” mindset will only further deluge a regional market that is already saturated and forced to reach out ever farther to attract the same number of customers. Increased supply will increase pressure on existing operators in the Northeast, and possibly on the US gaming sector as a whole. Although the increase in gaming supply may still result in higher overall gaming and gaming-related revenues, without a marked improvement in the US economy that is accompanied by an increased willingness of consumers to spend more money on gaming, these revenues are not expected to result in a material improvement in overall sector profits.