Vegas Gambles on Future

The slump in Las Vegas may be bottoming out, but odds are good that a coming wave of new resorts will hinder any rebound in hotel rates or casino revenue.

That could put a cap on profits at recession-battered casino companies.

MGM Mirage, Las Vegas Sands Corp. and Wynn Resorts Ltd. this week reported stronger-than-expected first-quarter results, helping to boost their heavily battered stock prices.

"I see that starting in September – maybe October, more appropriately – we are going to have an accelerated booking pace ... I hesitate to use the word getting back to normal, but I think we are getting close to getting back to normal in 2010," Sheldon Adelson, Sands' chair and chief executive, said this week.

Analysts, however, warn that there is no concrete evidence as yet that the bottom of the downturn is in sight in Las Vegas.

For the complete story, please see Deena Beasley, Vegas rolls dice on an uncertain future, Reuters via The Toronto Star, May 10, 2009.