The high-flying gambling industry, long thought to be recession-proof, is having its wings clipped, and its woes may say as much about the economy as about the industry.
So far this year, a handful of debt-laden casino operators have filed for bankruptcy, and several others have shelved or slowed ambitious expansion plans as financing has become tougher to secure.
“Obviously, this is a time of great uncertainty within the gaming business,” said Jim Perry, chief executive of Isle of Capri Casinos, on a recent conference call with analysts. “A lot of it is caused by uncertainty regarding gas prices and the economic slowdown.”
The extent of the industry's troubles is all the more shocking because casinos had performed moderately well during the recessions of 1990-91 and 2001.
That's not proving to be the case this time around. Through June, gambling revenue in Las Vegas is down 5.6% year over year, according to data from Standard & Poor's. Revenue in Atlantic City has dropped 6.1%. In both locations, sales had continued to grow through the prior two recessions.
For the complete story, please see Mathew Monks, Gambling's woes more than a wager gone bad
, Financial Week, August 11, 2008.
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment