The Impact of Exchange Rates on Casino Revenues in Major U.S. Gaming Markets

Abstract

For years the gaming industry, especially within Las Vegas, considered itself recession proof, this feeling has been drastically altered by the recent financial turmoil. While it is easy to understand how statistics and finance are the true laws of gaming, one area that has been overlooked has been impact of Foreign Exchange on the Hospitality and Tourism. This paper explores the relationship of foreign exchange rates of the five major tourist markets (Great Britain, Europe, Canada, Japan, and Mexico, and compares the change in currency values to the changes in the casino revenues the major U.S. casino destinations of Atlantic City, The Las Vegas Strip, Downtown Las Vegas, and Laughlin and boulder City Nevada. We utilized exchange rate data from Oanda Foreign Exchange Casino Revenue data for all Nevada areas was provided by the Nevada Gaming Control Board, and the Revenue Data for Atlantic City was provided by New Jersey Casino Control Commission.