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Gaming Stocks & Tourism Down for Las Vegas

Posted on October 28, 2009 by Jordan There have been 0 comments


The decreasing gaming stocks desperately rely on the amount of visitors in Las Vegas, and this travel destination has continued to its see numbers fall. Las Vegas is a city that is fed by consumer spending from not only the U.S., but also from the whole global economy. Local gaming stocks continue to fall from the shaky economic times and heading into flu season the future of gaming stocks does not look very promising for an increase any time soon. An increased scare of the H1N1 virus is one of the key factors influencing decisions to travel or not to Las Vegas and other destinations, more people are simply staying home. Gaming stocks fell for three big Las Vegas hotel and casino operators who saw third-quarter results decrease with the continuing economic downturn.

Harrah's Entertainment Inc., which owns many Harrah’s brand name casinos around the world, including a major potion of the Las Vegas gaming market. Harrah’s owns well-known casinos such as Caesars Palace, Bally’s, Imperial Palace, and the Paris in Las Vegas. However, Harrah’s reported that its revenue fell 13.7 percent to $2.282 billion and fell even more in Las Vegas, by 17.5 percent, as the recession continues to hurt their casinos and hotels.

Wynn is also down, falling to $4.81, which is a 7.6 percent decrease after reporting a 33 percent drop in third-quarter profit. Wynn Resorts Ltd. owns the Las Vegas hotel and casinos, Wynn and the Encore, along with the Wynn Macau Resort. Wynn’s revenue grew slightly to $773 million, but saw quarterly profits off by a third to $34.2 million or 28 cents per share. Wynn reported hotel room occupancy of 83.9 percent during the quarter was down from 96.1 percent during the same period of 2008. Average daily room rates fell from $272 to $210. Even as it beat earnings expectations of 16 cents per share, Wynn stock fell 11 percent to $56.13.

Boyd Gaming Corp. which owns many casino and hotels off of the Strip in Las Vegas, including the Coast casinos, Fremont, Main Street Station and Sam’s Town has reported a revenue decrease of 28.3 percent to $398.2 million. Also reporting quarterly profit of $6.3 million or 7 cents per share missed analyst expectations. Boyd Gaming also reported a third-quarter profit decline of 27%, having been hurt by the effects of unemployment and the housing crisis on its clientele of mainly Las Vegas locals.

This post was posted in Vegas News