The gaming industry isn’t as recession-proof as many expected and experienced wide-scale expansion since the last economic downturn, but this year it has seen significant market activity and continued growth is expected according to Steve Epperly, Senior Director of Gaming Finance & Advisory at CIT Group Inc. (NYSE: CIT) cit.com, a leading provider of financing to small businesses and middle market companies. Epperly explains how gaming operators are making smarter investments, why new states are looking to get involved and how online gaming may actually help traditional operators in the “U.S. Gaming Sector On a Roll” ( cit.com/podcastepperly) executive podcast.
Steve Epperly, Senior Director of Gaming Finance & Advisory at CIT. (Photo: Business Wire)
The interview is part of the latest installment of the award-winning CIT 5 Minute Capital ( 5minutecapital.com) podcast series, featuring senior CIT executive commentary on current market conditions and industry trends.
High-Level of Market Activity Continues
The gaming industry has seen a significant amount of activity this year and last, with very active senior secured and bond markets. “This is being driven primarily because of borrowers running up against maturities on debt that was borrowed back in the mid-2000s,” explains Epperly. He continues, “We are also seeing a fair amount of activity for new projects in jurisdictions that have recently legislated expansion of gaming, such as Ohio and Kansas.”Smarter Expansions Companies are now being much more thoughtful about making new investments or growth decisions. “They really are doing the math. Only those projects that have a meaningful ROI and have a very high probability of success are getting done,” comments Epperly.