Las Vegas Sun NewsBudget resorts, locals casinos struggle in third quarter
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3 December 2012
1:55 a.m.
Third-quarter financials are in for the Las Vegas gaming industry, and they show continued difficulties for two of the valley’s three main casino sectors. While most high-end Strip resorts saw profits in the quarter ending Sept. 30, mass market Strip casinos struggled, as did locals casinos. The Strip’s budget properties faced an uphill battle trying to get recession-weary customers to part with their dollars. Some of the casinos also played unlucky, meaning they didn’t win as much as usual from gamblers. Locals casinos also underperformed as valley residents continued to reel from the recession. The Las Vegas area’s unemployment and ...
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There is saturation now and I doubt that will ever change back to the days of $225 for a Friday night at the LVH - or comparison properties.
Consider the airlines a few years ago...A glut in empty seats made for some great airfares...What did they do? Parked airplanes in the desert and sold many of the older MD 80 types (American A) to reduce inventory. Now, we have $ 450 domestic prices again.
Casinos cannot "Park" in the desert so 30-50% occupancy rates are here to stay - Wynn and Adelsen's boost to Macau adds to the empty beds back here in the US of A.
It's quite possible that 2012 will be looked upon as the "good ol days". Future tax burdens will continue to reduce discretionary spending which is the foundation for Las Vegas future.
I know half of dozen of people that used to visit Vegas like some sort of pilgrimage, none of them have been there for years and have shifted what little excess income they have to local Indian casinos.
Pretty sad.
Quite simply, the locals market will never rebound to anywhere near the 2000-2006 days. That was built on the days when people were using home equity as an ATM. You had people making 20-25K a year gambling like wildfire as long as they owned a home. What's another $1,000 when my home value has doubed in a couple years and I can just pull out equity? Maintenance workers, waitresses, construction workers sitting at $25 blackjack tables to no end. Those days are gone forever.
Now the casinos are in "cut debt and survive" mode. The only locals Casino that has any chance is Station simply because they wiped out about 4 billion in debt thru bankruptcy.
This is why we should tax the rich, because the middle class can not afford to take a gambling vacation. The high end casinos owned by Republicans, Wynn Adeledson should be subject to a special surtax as well,
Stations recently laid off 20% of their work force. Cutting staff to a bear minimum might look good on paper but won't win them any points on service. Maybe they should change their slogan to "We do our best to love locals with what we got left" But then again those in the know can see that Stations has become the Ugly Red Headed Step Child of the Fertitta business empire and doesn't stack up to UFC.
Readers: A commenter claimed that Station Casinos recently laid off 20 percent of its workforce. Station officials said today there have been no such layoffs.
During the financial crisis the United States lost $20 trillion of wealth. People have only gotten a few trillion back from the stock market which is doubled and a mild real estate recovery. It takes decades to recover from these types of losses. I believe we still have years of difficult times ahead of us.
I was once a regular visitor to a certain Station casino on the northern part of the 95. Betting on some sporting events and playing some poker at the bar. In the past few years the service at the bar has been dismal at best. Bartenders seem to hover around a friend or two and almost ignore the rest of the customers. Those in charge of running those casinos are some of the worst management this town has ever seen.
Delen, you are correct. Stations did not 'lay off'' employees. Stations demoted them from full time status to part time status to cut off their benefits without paying unemployment benefits for an actual layoff. That's class. Their 'luv the locals' attitude doesn't carry over to their employees.
...and all the while the valley could've hosted the marathon and picked up needed business. But belief that the strip equals all of a county of 2.5mill is what doesn't even allow such an idea to get into the discussion. Oh, wait, there is no discussion on these matters!!! Instead the infinite wisdom deigned, actually enchanted like glitter, as perfect planning just happens for us all. (B.S.!!!) Especially with those like the unbelievably and totally inexperienced Carolyn Goodman in charge!!! MAYOR GOODMAN, YOU'RE DOING A HECK OF A JOB!!! ESPECIALLY SINCE THE DAY BEFORE THE WEEK BEGINS YOU ALLOWED THE ENTIRE CITY TO BE TIED UP INSTEAD OF jJUST THE STRIP AS WE WE WERE TOLD!!! Man, that was as insensitive as someone far removed from circumstances has been here in a while. IN FACT, THIS IS NOTHING BUT CRUEL TO RULE BECAUSE CLUELESS IS A BETTER WORD!!!