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StumbleTropicana earnings show recession taking toll on Laughlin
Thursday, April 1, 2010 | 8:56 a.m.
The recession continued to punish Laughlin's casino industry in 2009, figures released Wednesday show.
Tropicana Entertainment Inc. of Las Vegas, owner of hotels and casinos in Laughlin and around the country, said in its annual report that its two Laughlin properties generated net revenue in 2009 of $104.2 million, down 15 percent from 2008.
Tropicana's two properties in Laughlin are the 1,495-room Tropicana Express and the 1,000-room River Palms. Together they employ 1,225 people.
Controlled by investor Carl Icahn, Tropicana Entertainment said casino revenue at the Laughlin properties fell 14 percent, hotel room revenue fell 14 percent and food and beverage revenue fell 7 percent.
The company said its average daily room rate in Laughlin fell from $35 in 2008 to $30 in 2009, while hotel occupancy fell from 67 percent to 65 percent.
"The decrease in revenues was a result of the economic slowdown and related reduction in discretionary spending by casino customers," Tropicana said, adding an expansion by one of its Laughlin competitors also hurt its results there.
Tropicana Entertainment said that despite cutting expenses at the two Laughlin properties by $8.7 million in 2009, they generated an operating loss of $4.2 million vs. a 2008 operating profit of $4 million.
Tropicana's results in Laughlin for 2009 were in line with those reported by competitor Harrah's Entertainment Inc., owner of the 1,510-room Harrah's Laughlin.
Harrah's reported Feb. 25 that a group of Nevada properties -- separate from its big Las Vegas Strip resorts -- produced 2009 net revenue of $473 million, down from $573 million in 2008. Harrah's Laughlin and its properties in Reno and Lake Tahoe are included in that group.
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Unfortunately Laughlin is so well off the beaten path out there between 95 and 40 down in that hot valley along the river. With the hot weather season about to ramp up, This area will probably suffer further drop off in tourism to the Indian casinos in Scottsdale Az., San Berdoo, Palm Springs, and San Diego CA. They are a lot closer to the population base of Arizona and Southern California, and people don't have to make that trek across the Mojave and Sonoran Deserts..Would you?
Laughlin is great for quick get aways from Vegas and great for boating when its real hot...we make that trek several times a year.
We live in Laughlin because it's off the beaten path. Luckily we are retired, so income isn't an issue with us (nor employment).
The Tropicana has sadly closed one of the best Mexican restaurants they had (it was always packed) to put in a fast-food type Mexican restaurant, and the food is terrible.
In all their restaurants, the food quality has dropped - that's part of their problem.
Their drinks are 'water' yet priced at $5.50 and up - again, that's why people have stopped drinking.
Their newer remodeled section of rooms is lovely; priced right, and it's too bad they've invested in many new machines that don't pay - that drive people away; giving up the coin-play has driven us to the Pioneer.
Nevertheless the Pioneer has made some changes, and not for the better.
None of the hotels are good about offering vacation specials anymore; that's hurt the long-distance business, and they have to rely too much on locals....
Laughlin used to be a fun place to go. With the elimination of keno and most of the coin in slots, that fun is gone. Corporations are just trying to gouge the customers, much as they do in Las Vegas, and customers sense this and that is the root of the downturn.
The days of good customer service and small town service are gone. The Palms and the Trop used to be our home away from home and we moved on. The new changes were not beneficial to anyone as we read this article. We no longer take out of town friends to any of their restaurants as the food went downhill. They quit giving incentives to us locals other than some "Dollar Store" items, which isn't worth the trip in. Too Bad!
Laughlin may be the nation's worst gambling destination.
There is nothing alluring or inviting about Laughlin.
Most importantly, the gaming opportunities are distinctly poor.
Blackjack with bad rules, stingy slot machines, etc.
Do not bother venturing there, even if you are comped.
It's nice to finally see well constructed and purposeful comments in the Sun's pages... most responders are bitter cranky whiners who have nothing better to do than complain about EVERY thing in life. I found all your comments very informative as I had been considering a LONG bus trip to laughlin or to Primm... or just another quick hop over to West Wendover on the Utah border... they are not hurting there, and after a slow early winter of some cutbacks, they are returning to excellent quality food again and better service, even though most workers there do not speak much english--a smile is understood in any language, and damn, them people do work hard and try their hardest to make sure you're comfortable and happy... Thanks loyal Sun readers... I miss Las Vegas and Clark County, but you all help bring it "home" again to me!!
Im 23 and i love Laughlin in the summer time. There is nothing better then BBQing at the lake and floating around drinking all day then going back to the casino and gambling before its time to get a couple hours of sleep then wake up and do it again.
Yes, I agree with the people for the most of what I read here. Laughlin back then as we call it used to be such a fun place to go where ever you went casino wise. My feelings are that they have put new machines in that do not pay off very often. Also I deeply feel sorry for a lot of the casino employeee's working so hard to provide a low standard of living and can barely get by. I know this to be true as I worked at the Tropicana L for 17 months as a porter on swing shift, I would work very hard in this area, but only to be harrased by supervisors and then eventually be let go, on the basis of a no call no show even having called in proven by phone record to sup! But because of person being hispanic I called in with, he is a no call! Bottom line is this: The Tropicana L needs serious changes in management,and certainly wages!!!So if your looking for fun do not attend the Tropicana L as you will be let down! And employment wise: Stay away from enviromental services unless your blind, deaf, and dumb.