Are Casinos Feeling the Recession?
In a country where sightseeing tour buses are being replaced by bus tours showing people long lists of foreclosed homes everyone is feeling the bite of recession. Even the casinos are feeling the pinch of the current economic situation. Revenues are down and the casinos are already reacting and making changes to their operations. The numbers don’t lie; February revenue fell 6.6% for table games, but there was an 11.9% increase in slots intake. Overall there was a 2% decrease in revenue.
The MGM Corporation has already started cutting back staff from full time to on-call positions. It’s also rumoured that Harrahs will be cutting back on recruitment, only offering new employees on-call positions. Harrahs has also withdrawn from two overseas projects and the development of the Imperial Palace/Barbary Coast plot seems to be on hold. Atlantic City Casinos have started to cut back on comps to save money, no more free rolls of quarters. The average tourist is paying more for everything, and trips to Vegas or Atlantic City are not as appealing as they were this time last year.
Foreclosures are at an all-time high because of high interest rates, and construction workers are leaving the city in droves. Condo prices are dropping dramatically and investors are losing hundreds of thousands of dollars every month. All the gambling spots are also feeling the pinch of rising energy costs and the diminished dollar. With the billions in expansion spent over the last five years, the developments are having a hard time keeping up with the rising cost of living.
