The Depression Hits Las Vegas

Mousey

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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!

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"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...:cool:
 

GaryWatson

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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

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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

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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.
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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.
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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.
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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.
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dominique

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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

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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

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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 :D
 

lots0

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I live about 1 1/2 hours away from Vegas by puddle jumper, so I go there often.

I was in Vegas last week.

There were few people in the shows and events, but you couldn't hardly find a seat at the tables (at the Palms).

Everything was so much less expensive. :thumbsup:

It was kinda cool... Like going back to the 70's, when casinos on the strip catered to gamblers.

I really hated it when Vegas went "Disney".

BTW - I gotta say the Playboy Casino in the Palms has the hottest looking women in the whole wide world working there... :thumbsup::thumbsup::thumbsup:
 

polli123

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Been to Vegas too in Feb, 7 days. Yes, its cheaper than teh years before, but where have all the people gone?
Its still a 24h rush hour at the weekend (k, only at the strip). But i try to come 2 times a year since 2005 and after this trip i can say: jea, you see the financial crisis directly at the strip. Empty tables and clubs, waised streets, often you are one of a handful guests in a restaurant, and so on...

Hope it will be better for you US pals next year.
 

pokeraddict

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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.

I'm getting stuff in the mail from places I've only been in once years ago. Harrah's sends me all sorts of free coupons and the only action I've given them in 2 years is WSOP. Orleans/Gold Coast and MGM properties are also places I've had nothing to do with for years and they beg me to stay there. It's quite mind boggling.

As for stocks it is hard not to think you could pick a couple of ponies here and do OK. IGT doesn't look bad, MGM maybe and casinos that have more properties outside of LV are not doing as bad. For example I live just outside of Deadwood SD and things there are not down too bad except on bad weather days. This is also not tourist season either so that will really be the test.

I also wrote some content for my company where I have the opinion that this isn't bad for our industry. Specifically look at Poker Star's growth on Poker Scout. People don't have to take vacation time, pay airfare, hotel and buy overpriced food to play online poker.
 

lots0

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As for stocks it is hard not to think you could pick a couple of ponies here and do OK. IGT doesn't look bad, MGM maybe and casinos that have more properties outside of LV are not doing as bad. For example I live just outside of Deadwood SD and things there are not down too bad except on bad weather days. This is also not tourist season either so that will really be the test.
I own PNK, ASCA and MGM... ;)
I used to own LVS but I sold it a couple of weeks ago and made a killing... :) I might just pick up some more here soon, it just went under 3...

Gotta say for a real gambling thrill there is no place like the Market.

I also wrote some content for my company where I have the opinion that this isn't bad for our industry. Specifically look at Poker Star's growth on Poker Scout. People don't have to take vacation time, pay airfare, hotel and buy overpriced food to play online poker.
I still like playing where "I can see the whites of there eyes", so to speak.
I play much better in person.
 
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