Hippodrome Casino in London reports falling profits for last year
The Hippodrome, one of the UK’s most well-known Casinos and located in London’s Leceister Square, saw profits fall by over 50% in the last financial year. The casino’s operators blame Brexit and the unusually hot weather in 2018.
If you think of a larger-than-live experience, then your mind probably automatically thinks of London’s famous Hippodrome casino. The establishment with its fluffy carpets and massive chandeliers isn’t far off the casinos we know from the James Bond movies. But despite all the glitz and glamour, the company’s revenue slumped from £77.7m to £76.5m last year. What’s worse; its operating profit dropped over 50% from £5.5m to a mere £2.1m.
Who thinks that the magic of casinos is coming to an end might still be wrong. Despite the lower profits, the central London casino saw an increase in customers of four per cent, £1.7m in total, to visit its gaming and dining facilities.
Heatwave, Brexit and Online Casinos impact profits
To explain the profit drop, one has to look at various factors that directly or indirectly impact the brick-and-mortar casino industry.
The year 2018 was scorching – for UK weather standards – which means people spend more time in parks and pubs than usual. If they visited the casino – and more people did compare to the year before – they spent less time and less money.
Another factor was the slow economic growth combined with uncertainty around Brexit, which weakened consumer confidence and ultimately let to less spending overall.
Last but not least, brick-and-mortar casinos are fighting against online casinos. Every month, another gambling website opens its virtual doors and delivers yet another thrilling gaming experience to players across the United Kingdom. Players don’t even have to leave their house to play roulette, blackjack and online slots, and with virtual reality making further progress, soon you can also feel the true casino experience from the comfort of your couch.