• News

    Stay on top of past and present CIT announcements by reading our press releases.


  • pdf print email rss
    More States Betting on Legalized Gambling to Create Revenue; Regional Gaming Facing Compression
    CIT Offers Outlook on the Growth and Financial Needs of the Commercial Gaming Sector
    Monday, June 16, 2014 08:30 AM
    An increasing number of states want to provide gaming options to their residents rather than see them head to adjacent states to gamble, leading to the recent expansion of the gaming industry

    NEW YORK--(BUSINESS WIRE)--As more states look to fill their coffers with gaming revenue, many regional operators are facing increased pressure from the added competition from adjacent markets, according to Steve Epperly, Senior Director, CIT Corporate Finance, Gaming, a division ofCIT Group Inc. (NYSE:CIT) cit.com, a leading provider of commercial lending, leasing and advisory services. “An increasing number of states want to provide gaming options to their residents rather than see them head to adjacent states to gamble, leading to the recent expansion of the gaming industry,” says Epperly. These are some of the insights found in “Betting on the Commercial Gaming Sector” (cit.com/epperly), the latest installment in the CIT Executive Spotlight(cit.com/executivespotlight) series of in-depth executive Q&As.

    “In the face of tightened budgets and revenue streams, gaming is becoming more and more important to states,” notes Epperly. “Traditional regional gaming markets are feeling the impact of this expansion, whereas before they enjoyed exclusivity within their markets, they now have to deal with new entrants in adjacent states.”

    The Midwest is facing this particular situation, where Ohio’s recent casino openings are putting pressure on operators in Illinois and Michigan. Additionally, the rise of Pennsylvania’s casinos has put pressure on Connecticut’s gaming sector. Compounding the compression is the fact that middle class gamblers—the staple consumer for many regional markets—now game less frequently in the wake of the Great Recession.

    Epperly offers additional insights into the U.S. gaming industry, including:

    • The sector is looking for a mixed bag of financing options in an effort to reinvent itself: Gaming companies are using financing for expansion, greenfield project finance and acquisitions. Larger operators are shedding non-core properties which are creating opportunities for smaller, less diversified companies to pick up new businesses and diversify themselves.
    • Potential borrowing cost increase on the horizon: Many gaming operators have maturities and obligations coming due in the next few years. Dependent upon the markets in which those companies operate, this situation could potentially lead to higher borrowing costs in markets that are under pressure or declining due to increased competition.
    • Some U.S. regions offer bright spots: Newly created jurisdictions in Massachusetts, Ohio and Maryland have casinos in the pipeline to be built, or opening soon. Las Vegas is also on the rebound with increased investment in new openings and property expansions.
    • Online gaming will benefit from more regulation: Online gaming will roll out slowly, on a state-by-state basis, likely under the regulatory framework already established in these states for traditional land-based gaming. Growth in online gaming will reach a tipping point when a critical mass of states approve the activity and then enter into interstate compacts that pool gamers in these states together, similar to those agreements that govern multistate lotteries such as Powerball.
    • Opportunities in the market exist in commercial, Native American and abroad: Asia remains a growing international market. As a result of profitable investments in Macau that kept some operators afloat during the Great Recession, companies are looking toward Japan, South Korea, the Philippines, Singapore and Vietnam as prime real estate for the next gaming boom. Expect to see continued loan demand in the Native American gaming sector from expansions on better performing Native American casinos and on the commercial side, loan demand will be driven by M&A activity and refinancing.

    EDITOR’S NOTE:

    View CIT’s corporate overview video (cit.com/corporatevideo) and CIT’s Perspectives (cit.com/perspectives), which showcases our insights and ability to put our knowledge to work for the small business, middle market and transportation sectors. Follow us onTwitterLinkedInYouTube and Facebook or register to receive press releases at cit.com/newsalerts.

    About CIT Corporate Finance

    Corporate Finance provides lending, leasing and other financial and advisory services to the middle market with a focus on specific industries, including: Aerospace & Defense, Business Services, Communications, Energy, Entertainment, Gaming, Healthcare, Industrials, Information Services & Technology, Restaurants, Retail, and Sports & Media. cit.com/corporatefinance

    About CIT

    Founded in 1908, CIT (NYSE: CIT) is a financial holding company with approximately $35 billion in financing and leasing assets. It provides financing, leasing and advisory services to its clients and their customers across more than 30 industries. CIT maintains leadership positions in middle market lendingfactoringretail and equipment finance, as well as aerospaceequipment and rail leasing. CIT’s U.S. bank subsidiary CIT Bank (Member FDIC), BankOnCIT.com, offers a variety of savings options designed to help customers achieve their financial goals. cit.com 

    Contact:

    CIT MEDIA RELATIONS:
    C. Curtis Ritter, 973-740-5390
    Senior Vice President of Corporate Communications
    Curt.Ritter@cit.com
    or
    Matt Klein, 973-597-2020
    Vice President, Media Relations
    Matt.Klein@cit.com
    or
    CIT INVESTOR RELATIONS:
    Barbara Callahan, 973-740-5058
    Senior Vice President
    Barbara.Callahan@cit.com

     

  • Retail

    L.A. Fashion Industry Profile

    The Los Angeles fashion industry continues to play a crucial role in the city's economy and adopts a vanguard position trends that are changing the fashion industry.
    Twitter
    CIT  ‏@citgroup  3 Days ago

    Could free shipping become the new normal? Learn more. #ViewfromtheMiddle ow.ly/VFZ6t