The Depression Hits Las Vegas

**Mousey** · 12th February 2009, 05:29 PM

Depression Hits Las Vegas

By 24/7 Wall St. Thursday, Feb. 12, 2009

Casino gambling is part of the American Dream. "The World Series of Poker" gets better ratings than the Super Bowl. But, even the gaming industry is in trouble. The people who have visions of making millions on one roll of the dice are out of work.

Dow Jones reports that the overall take on the Las Vegas Strip was down 23% to $474 million in December. (Read "25 People to Blame for the Financial Crisis".)

The madness of gambling is based on the belief that either the player will win or somehow come up with the money if he loses. Since gamblers frequenting casinos rarely win, the real issue is their ability to pay off debt. Las Vegas has become ...

**Simmo!** · 12th February 2009, 07:52 PM

"One of the things that happens in an especially sharp and unexpected economic downturn is that the gambling instinct gets kicked out of everyone."

Erm...

**Webzcas** · 12th February 2009, 08:08 PM

Send Simmo! to Vegas. That would put a stop to the downturn

**GaryWatson** · 12th February 2009, 08:17 PM

Resession will probably cause more gambling problems. I was once a problem gambler. I can crawl into the mind of one. I do it daily with friends. Gambling took me away from my gambling habit. Now I only gamble on my own skill, other bets are for interest, not to make money.

During a Resession, people look at the $$$. Gambling is based around it. The UIGEA is the only thing that has slowed down this industry

**uungy** · 12th February 2009, 08:41 PM

Originally Posted by GaryWatson

Resession will probably cause more gambling problems. I was once a problem gambler. I can crawl into the mind of one. I do it daily with friends. Gambling took me away from my gambling habit. Now I only gamble on my own skill, other bets are for interest, not to make money.

During a Resession, people look at the $$$. Gambling is based around it. The UIGEA is the only thing that has slowed down this industry

Cant agree more!

From the report, it sounds as though they have messed up by being owed vast sums, that doesnt mean there is a downturn now, just means they are probably bing a bit stricter with the loans, hence a downturn, however they will probably more likely get all what they are owed now, with the new way they allow the bigger accounts.

If anything, I would second that things will go up, and online will grow even faster.

**lots0** · 13th February 2009, 05:03 PM

I watch the casino stocks perdy close. They are all mostly down and many have reported losses or less than expected earnings in the past few days.

Gambling in general is still going strong. However, the Depression has hit the Vegas Strip for sure.

Here are some of TODAYS Headlines out of Vegas.

Las Vegas Sands posted a loss in the 4th quarter

The company (Las Vegas Sands) said it had a net loss of $111.3 million, or 27 cents per share, for the fourth quarter of 2008 compared to a profit of $39.8 million, or 11 cents per share, in the comparable period for 2007.

http://www.lasvegassun.com/news/2009...ings-net-loss/

Ameristar Casinos announces fourth-quarter loss

Ameristar Casinos reported today a fourth-quarter 2008 loss of $101.1 million, compared to a net income of $8.2 million in the comparable period of 2007.

http://www.lasvegassun.com/news/2009...-quarter-loss/

Penn National Gaming posts fourth quarter loss

Penn National Gaming today posted a fourth quarter 2008 loss of $378.6 million, compared to a $32.2 million profit the company saw in the comparable period for 2007.

http://www.lasvegassun.com/news/2009...-quarter-loss/

Gaming decline in 2008 falls at record level

CARSON CITY � Nevada casinos saw their winnings slide 9.7 percent in 2008, the biggest drop in state history.

http://www.lasvegassun.com/news/2009...cent-december/

**dominique** · 13th February 2009, 06:00 PM

I have never in my life gotten this much mail and email from Vegas, invites for months ahead and every week from every casino I ever stayed at.

They must be really desperate.

**lots0** · 13th February 2009, 06:40 PM

Originally Posted by dominique

They must be really desperate.

The Vegas Casinos leveraged themselves way way way too much.
Most of them have about $4.00 leveraged for every $1.00 they were earning. Put that on top of the mass reduction in consumer spending in Vegas and your gonna see some of these guys on the strip go under... Soon.

**littlebit** · 14th February 2009, 12:45 AM

Maybe Harry Reid should have just given the billions of dollars directly to casinos instead of the earmarked high speed rail from Los Angeles to Las Vegas . It might be a very empty train at the rate things are going