Tunica, MS Gaming Market Growth Lags

NEW YORK Last week, Goldman Sachs visited eight casinos in the Tunica, MS market as part of an investor field trip. The group came away from the trip with a sense that the market will continue to be weak and that operators will likely engage in more predatory promotional tactics. Goldman Sachs believes that the Tunica gaming market has become a mature market and is projecting 1-to-3% growth over the next few years, lower than a previous forecast of 3-to-5%. Additionally, the profitability of existing casinos in the market is expected to decline, as a market share fight could lead to increasing promotional and marketing expenses. (12/4/00)