The period when profit statistics are released should be a happy time for the casinos. Casino officials enjoying the afterglow of good profits that their casinos have achieve. On May 13th, 2008, that has not been the scenario when the statistics for the first quarter of the year was released. Casino gaming operators are having a hard time explaining why their profits have dropped at a historic low and at such a fast pace.
It was widely known that the weakening economy, aside from the non-stop rise of the gas prices, would affect the health of the gaming industry. Factor in the fact that every state in the U.S. like in Pennsylvania and New York is currently legalizing gaming to help with the budget deficit and the profit numbers of the Las Vegas strip and Atlantic City is expected to fall down.
Already some large gaming organizations like MGM Mirage, Trump Casino, Las Vegas Sands and others have stated losses from the same period last year. They all cited the reasons above as the cause for lower profit this year. Some companies like the Las Vegas Sands and Wynn Casino are already looking to invest more in abroad like in Macau where the overall gaming climate is better compared in the U.S. specifically in Nevada and New Jersey.
05/21/2008 02:13 PM