[SHEPNYC]

May gambling revenue down more than 15%

"The decline in Strip revenues is worse than the period immediately following Sept. 11, 2001 and except for January 2002 is the worst monthly performance in more than 10 years," wrote Robin Farley of UBS in a note. "The weakness in gaming revenues was not confined exclusively to the Strip as the Las Vegas locals market declined 19.5% in May, bringing year to date revenues down 8.7%."

Precipitous drop in gambling revenue guts casino stocks - MarketWatch

[jpk]

That survey found prices below $90 at Luxor, MGM Grand, Flamingo, Hard Rock, Mirage, Palms, Planet Hollywood and Paris, while "a rate check of comparable accommodations in New York, Los Angeles, San Francisco and Orlando yielded only two hotels with a sub-$50 rate."

Huh? So while it's apparently a bad sign that you can get a very nice room in Vegas for $90, they are saying that it's other major cities are doing OK when they can offer similar rooms for less than $50?

BTW, a $90 room at these hotels is not new. In off-peak times you could always get a room at that rate.

Yes, gaming revenue will probably be down. I'm not denying that, but it's overblown. People are spending the excess pocket money on the higher cost of gas, airfare, and food. They are still paying for rooms, still buying food, and still coming to Vegas in roughly the same numbers. Just throwing less money away at the tables, which makes sense given the rising expenses.

[SHEPNYC]

Originally Posted by jpk

Huh? So while it's apparently a bad sign that you can get a very nice room in Vegas for $90, they are saying that it's other major cities are doing OK when they can offer similar rooms for less than $50?

BTW, a $90 room at these hotels is not new. In off-peak times you could always get a room at that rate.

Yes, gaming revenue will probably be down. I'm not denying that, but it's overblown. People are spending the excess pocket money on the higher cost of gas, airfare, and food. They are still paying for rooms, still buying food, and still coming to Vegas in roughly the same numbers. Just throwing less money away at the tables, which makes sense given the rising expenses.

You're a really optimistic guy! Than explain why MGM's stock was down over 20% today and down 77% in the past 9 months?

[dude66]

Originally Posted by jpk

Huh? So while it's apparently a bad sign that you can get a very nice room in Vegas for $90, they are saying that it's other major cities are doing OK when they can offer similar rooms for less than $50?

BTW, a $90 room at these hotels is not new. In off-peak times you could always get a room at that rate.

Yes, gaming revenue will probably be down. I'm not denying that, but it's overblown. People are spending the excess pocket money on the higher cost of gas, airfare, and food. They are still paying for rooms, still buying food, and still coming to Vegas in roughly the same numbers. Just throwing less money away at the tables, which makes sense given the rising expenses.

Bwahahaha!! A 16.4% decline is overblown?!? That's rich! I'm sure you wouldn't mind taking a 16.4% pay cut then!

Get real dude!

And correct me if I'm wrong, but this was just a MONTHLY decline - which you have to add on top of the other declines for May, April, and March!

And I suppose this part of the article is "overblown" too:

"We are seeing it [slump] across all market segments in Las Vegas, whether it is the tourist market or the locals market," said Keith Smith, chief executive of Boyd Gaming. "Unemployment is up an lot of those people are our customers who come to [play] at our properties."

[dmilll]

Originally Posted by jpk

Just throwing less money away at the tables, which makes sense given the rising expenses.

Less money spent at the tables will no doubt translate into fewer tips for the dealers. Not good for a profession that largely depends on this to supplement their income.

It will be interesting to see what happens when some the new mega properties come online. If tourism does not increase, you will have more hotels trying the draw from the same well...

[dynimagelv]

When I came here in 1962, I was talking to the Casino Manager at the Thunderbird [then a bustling hotel] he said "If they put one more slot machine in this town the whole town will roll up and die."

I agree that the new hotels coming online will cause a rethinking of the way we market the rooms and casino. But that's what we do for a living. some hotels react to the change slower then others. We have just completed the 2nd best May, June in the history of the hotel [45 years] and are on the way to the same for July.

Is it down from last year .....yes.....is it up from previous years....yes

[sheriff]

Originally Posted by dynimagelv

When I came here in 1962, I was talking to the Casino Manager at the Thunderbird [then a bustling hotel] he said "If they put one more slot machine in this town the whole town will roll up and die."

I agree that the new hotels coming online will cause a rethinking of the way we market the rooms and casino. But that's what we do for a living. some hotels react to the change slower then others. We have just completed the 2nd best May, June in the history of the hotel [45 years] and are on the way to the same for July.

Is it down from last year .....yes.....is it up from previous years....yes

Your HOTEL may have done just fine---I believe this thread, however is in regard to GAMING revenue, which was down 17% downtown.

[dmilll]

Originally Posted by dynimagelv

When I came here in 1962, I was talking to the Casino Manager at the Thunderbird [then a bustling hotel] he said "If they put one more slot machine in this town the whole town will roll up and die."

I agree that the new hotels coming online will cause a rethinking of the way we market the rooms and casino. But that's what we do for a living. some hotels react to the change slower then others. We have just completed the 2nd best May, June in the history of the hotel [45 years] and are on the way to the same for July.

Is it down from last year .....yes.....is it up from previous years....yes

I remember the Thunderbird/Silverbird as it was right across the street from Circus Circus (back when they had the nice fountains). Never much cared for El Rancho and was glad to see it close and torn down.

Anyway getting back to the topic of gaming….

Back then until a few years ago, there were limited options in terms of legal casino gambling. As everyone knows, that is not the case today as many states have some form of gaming in the form of Indian Reservations, Riverboat’s etc..

Does this mean that people will stop coming to Vegas? No, but as the average tourist is squeezed by inflation in the form of higher airfares and energy costs, that drive to the local Indian Casino is going to look all that more attractive compared to Vegas.

IMO the larger higher-end properties will probably still get by on name recognition but the mid-range and marginal properties are going to have a hard time at least in the short term…

[radraja]

I saw on the news the other day that international revenues are up, and that overall profits are only down by a very small margin.

[airics]

isn't gaming down everywhere? even the indian casinos... fact is that it is too damn expensive to fly anywhere or even drive now.