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Vegas Sees Reduced Revenue, Reduced Rates

Gambling News - August 3rd, 2009 - Written by Glen

With the release of second quarter financial reports, we have seen a continued slip in casino stock and revenue. As gambling shifts to smaller sites throughout the U.S., the east through Macau, and the Internet, Las Vegas continues to hurt. Debt runs high, bankruptcy is a common thought amongst owners, but an untold advantage for the end user has shown through. Staying at a Las Vegas hotel may run significantly cheaper now than it has in the past.

MGM Mirage has begun a shift to Macau, their new business partner. Macau is beginning to thrive, due in part to decreased restriction on tourism from China. MGM Mirage found their bail out plan through a deal with Macau casino operators, as they were facing complete and utter annihilation at the hands of their debtors prior to the agreement. Had they remained alone, the CityCenter project was sure to fail.

Despite MGM's partnership, they still saw over $200 million in losses in the second quarter. As casino and hotel operators seek new ways to bring in customers, they have turned their attention toward a new way to bring in customers who would other wise refuse - hotel room prices have been cut and dropped. A room that once ran for $260-300 a night could be picked up for $200 dollars a night. Rooms that were $150 have dropped to $100.

Las Vegas Sands, who also saw a 20% drop in revenue, has also cut room rates. Though they have not reduced rates in a very significant matter, supply and demand has reared its head and the reduced room rates are a direct reflection of the lack of guests.

Though casinos have been seeing financial hardship, it is suggested that things will turn around in the near future. The summer months are coming to a close and gamblers may flock to Vegas to enjoy the atmosphere when it isn't scorching with heat.

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