Swiss Casinos Feel The Impact As Less Italians Gamble

Lugano is the Swiss town where a casino lies not far from the Milan border. It’s less than an hour from Italy’s financial hub. For over a century, this casino has been a popular go-to spot for Italians who have wanted to gamble in the casinos. Approximately 80 percent of the casino’s visitors are Italian – and this was a good thing up until recently.

Swiss Casinos

There are a few reasons why the Swiss casino is feeling the impact.

Economic Strength of the France. The Swiss franc is making it harder for Italians to be able to spend their money in Switzerland. The franc is becoming stronger. It has appreciated approximate 25 percent against the euro in the past five years and this is an expense that few are able to truly afford.

Household Debt. In the past, Italy was known as a nation of saving. They had a lower household debt in comparison to the rest of the European Union. However, as unemployment has risen, the Italians have had no choice but to dip into their savings in order to prevent themselves from sliding into the poverty lines.

As people are dipping into their savings accounts more and more, the desire to head into the casinos is dipping as well. People are being wise with their money and they don’t want to risk it inside of a casino.

Revenue Slides. Swiss casinos have experienced an 8 percent drop in their revenue for 2012 and its estimated that they are going to see even more over the next year. Lugano experienced a 21 percent decline and the Admiral Casino in Mendrisio experienced a 12 percent decline.

Luca Antonini is the manager of Lugano and commented that last year, people were spending less. Now, they’re seeing less guests as well as people are deciding not to make the trip into Switzerland as well.

For the Italians that do have a little money to spend for gambling, many are simply sitting at home where they will be able to visit the online casinos. The idea of crossing the border into Switzerland to visit a casino is the farthest thing from most Italians’ minds as they try to be conservative with the little money they have.

In order for the Swiss casinos to become popular once again, the franc will need to drop in strength or the Italian economy will need to pick up – and none of these are looking too positive.

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