Cannery loss widens on Las Vegas locals’ gaming slump
Las Vegas Sun
14 November 2012
Cannery Casino Resorts LLC’s loss widened in the third quarter as gamblers spent less at its two Las Vegas-area casinos.
A regulatory filing today said revenue for the firm in the quarter ended Sept. 30 fell from $135.6 million to $119.5 million, primarily because of the expiration on March 31 of the company’s management contract for the Rampart casino at the JW Marriott resort in Summerlin.
Cannery’s quarterly loss widened from $2.5 million to $4.2 million, with the company seeing net revenue slump $2 million year-to-year from its Cannery hotel-casino in North Las Vegas and its Eastside Cannery in Las Vegas.
These locals casinos faces challenges from continued high unemployment in the Las Vegas area — 11.5 percent — as well as stiff competition from the likes of the Aliante hotel-casino, Boyd Gaming Corp.’s Sam’s Town, Station Casinos LLC’s Boulder Station and Santa Fe Station, and the two Arizona Charlie’s properties in town.
Net revenue was flat at Cannery’s Meadows Racetrack & Casino in Washington County, Pa.
Despite the larger loss in the third quarter, Cannery’s finances are considered to be in better shape after it refinanced debt and gained $590 million in new credit deals this fall.
This week, Cannery announced plans to pursue potential development of a casino in the Chicago area.
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