Facebook
Fark
Digg
Reddit
StumbleAnalysts: Weakness in gaming industry continues
Moody’s updated report shows uncertainties, but also good news
Wednesday, July 28, 2010 | 5 p.m.
Sun Archives
- Moody's upgrades gaming industry after marked improvement(6-22-2010)
- More Sun gaming stories(6-22-2010)
U.S. consumer confidence remains weak. More layoffs may be coming around the country, leaving people with even less money to spend. And while travel to Las Vegas is picking up, visitors are spending less for hotel rooms.
These factors show the Las Vegas gaming industry and the industry nationwide are likely to endure continued weakness at least through the end of the year.
That was confirmed Wednesday when Moody's Investors Service issued a report titled "U.S. Gaming: Proceed With Caution.''
Moody's made headlines June 22 when it upgraded the industry from negative to stable -- an indication the two and one half-year slide in gaming revenue and profitability may have bottomed out.
Moody's analysts led by Keith Foley on Wednesday presented an updated scenario with both some uncertainties and good news:
The uncertainties: "While sharp declines in U.S. monthly casino revenue have started to subside, there is a high degree of uncertainty over when gaming trends will improve from current levels, and if they do, how sustainable those improvements will be.''
Also, some state governments may expand gaming or increase gaming taxes, hurting existing operators; while lower spending by gaming companies on new must-see attractions and maintenance of existing properties will likely affect revenue down the road.
The good news: "Despite these headwinds, our outlook for the U.S. gaming sector remains stable because we believe severe year-over-year declines in monthly U.S. gaming revenue are nearing an end. As revenue bottoms out, we expect gaming company operating profits will stabilize by the end of 2010.''
Another bit of good news: "Although faced with challenges at their Las Vegas casinos, Las Vegas Sands and Wynn Resorts have been less affected because of their foray into Macau, an Asian market that is experiencing strong and growing visitation and consumer demand trends.''
In Wednesday's report, Moody's reiterated longstanding concerns that companies like industry giants Harrah's Entertainment Inc. and MGM Resorts International remain too leveraged -- meaning they are carrying too much debt in relation to cash flow generated by their casino resorts.
Harrah's, MGM Resorts and fellow Las Vegas companies Boyd Gaming Corp. and Pinnacle Entertainment Inc. are among the companies that need "overall business conditions to improve – not just stabilize'' in order to refinance debt coming due at ``less-than-onerous terms,'' Moody's said.
The backdrop of Moody's latest report on the gaming industry includes these four developments:
--Las Vegas Sands Corp., in announcing second quarter results Wednesday, noted occupancy and revenue per available room improved at the Venetian and the Palazzo on the Las Vegas Strip. But the average daily room rate at the Venetian of $184 was down from $186 in 2009's second quarter. At the Palazzo, the rate of $202 was down from $207 a year earlier.
--Wynn Resorts Ltd. last week said Wynn Las Vegas and Encore at Wynn Las Vegas posted an operating loss of $17.2 million in the second quarter vs. an operating loss of $8.3 million in the year-ago quarter. The properties posted an average daily hotel rate of $197 for the quarter ended June 30, down from $218 in the second quarter of 2009.
--Consumer confidence in the United States, a key factor in forecasting travel to Las Vegas and spending in the U.S. gaming capital, fell to a five-month low this month as Americans worried about continued job losses. The Conference Board, a private research group in New York, on Tuesday said its sentiment index fell to 50.4, below the median forecast of economists surveyed by Bloomberg News.
--Economists and analysts have been warning for weeks that even as private-sector job growth picks up, state and local governments are expected to lay off tens of thousands or even hundreds of thousands more workers. The states alone face a combined budget shortfall estimated by the Center on Budget and Policy Priorities to total $140 billion this fiscal year. The number of people employed by state and local governments has already declined by 212,000 since August 2008, the center says. As these workers are laid off, they'll be spending less on discretionary entertainment like gaming. The bottom line with unemployment around the nation is that it's projected to hover around the current 9.5 percent for some time.
"After two years of job losses, private payrolls expanded at an average of about 100,000 per month during the first half of this year, a pace insufficient to reduce the unemployment rate materially. In all likelihood, a significant amount of time will be required to restore the nearly 8-1/2 million jobs that were lost over 2008 and 2009,'' Federal Reserve Board Chairman Ben Bernanke told Congress July 21.
Discussion: comments so far…
Comments are moderated by Las Vegas Sun editors. Our goal is not to limit the discussion, but rather to elevate it. Comments should be relevant and contain no abusive language. Comments that are off-topic, vulgar, profane or include personal attacks will be removed. Full comments policy. Additionally, we now display comments from trusted commenters by default. Those wishing to become a trusted commenter need to verify their identity or sign in with Facebook Connect to tie their Facebook account to their Las Vegas Sun account. For more on this change, read our story about how it works and why we did it.
Only trusted comments are displayed on this page. Untrusted comments have expired from this story.
No trusted comments have been posted.
Post a comment
Most Popular
- Viewed
- Discussed
- E-mailed
- Coolican: Henderson officials out of loop on police brutality case, raising red flags
- See mug shots of 16 arrested in stolen-property police sting
- Lumberjacks — ‘Where the Big Boys Eat’ — hiring for North Las Vegas location
- Berkley draws stark contrasts with Heller over immigration
- Howard Miller, prominent lawyer and ‘true Las Vegas native,’ dies at 68
- Short memories may serve president
- Two dead after accident in downtown Las Vegas
- Instant Analysis: Debating whether UNLV should continue series with San Diego State
- Police looking for man in white Ford Explorer
- Saying ‘No mas’ to government
Blogs
The Kats Report
Live color from the scene at Thomas & Mack Center: We have a wire job! Rebels win, and Louie Armstrong sings!
South Point owner Michael Gaughan's take on 'Vegas Stripped': 'I'll give it an 8' (4 Comments)
Author relishes writing the life story of ‘larger-than-life’ Oscar Goodman (3 Comments)
Elsewhere
Landowner: All roads could lead to Uxbridge casino
Revel reveals smoke-free casino opening
Cirque du Soleil show in Sands China casino to close this month
Meet the woman behind Sheldon Adelson
The Sun
Locally owned and independent for more than 50 years.
I can tell you right now a MAJOR reason why Las Vegas Casinos/Hotels are drinkin pond water. The corporate idiots have destroyed the gambling experience with tight slots, 6/5 Black Jack , Expensive food and beverage, lousy if non existent comps, idiotic priorities such as millions spent on stupid swimming pool day clubs, poor customer service, destruction of the classic North Strip properties leaving us with steel skeletal structures dust blown virtually destroying whatever businesses are left standing in that area with NO foot traffic. Why would ANYONE in their right mind want to visit Las Vegas under these conditions??
I really am having alot of trouble digesting all of the financial news that I am hearing every day. I just read the numbers released on prior month taxable sales. I calculate that there has been a 50% drop in about 4 years. That is incredible.
I dont think you can add Pennsylvania casinos into this mix, not after they posted a 1.4 billion dollar profit for the year ending June 30. They just opened table games and we were at 2 of the casinos near Philly last week and weekend and could not believe how packed these operations were. What sets them apart is the pay with blackjack and the number of available $5.00 and $10.00 games. If you want a seat at any poker game you better get there early. I bet If I were to go to any Pa casino this moment there would be more people in any of their casinos than you would find in any of the best Atlantic City or Vegas properties. The one thing that Pa has done is that the casino profits goes to lowering the cost of property taxes across the state and I know people who have benefited greatly by the casino income.
People have found that the local Pa casinos are easy to get to, they dont have to be hassled with toll roads, hotel fees and other costs. they go for 4 hours spend their money, win some money and return within the next few days.
p
Cannon-Asesrb.... Since u are so smart what would u do to enhance business at the Casino's? You probably never ran anything more than a news stand at downtown Las Vegas . We are in a difficult environment and the bean counters are not helping by making things not tourist friendly. I think environprotector has some good points.
Environprotector -- Do you ever get tired of posting the same reply to every gaming related news story on this site?
Enviro: Do you have templates set up for your rubber stamp comments?
environ and I keep it constant. We either agree 100% or disagree 100%. Always fun to hear what he has to say. Like my good friend whose politcs are the oposite of mine, we may not agree, but I enjoy hearing what he has to say, and there's plenty we agree on. Someday we'll have to meet up with stevem and boris for lunch! Maybe jimmyhoofa can join in. The conversation would be interesting.
As long as the execs keep drawing out salaries in the hundreds of millions, there will be no profit for the "company". In the old days, high compensation came during years of high profit. That's fair (just throw some at bonuses for the staff too). But there's absolutely no excuse for draining the cash down when there's no cash to be had. It used to be a million ot 2, maybe even ten million was enough. Now they sap hundreds of millions out and watch the company go under. Look at the banking industry, same thing.
Gaming has to wait for a while to recover.
I live in Japan - we gone into big recession in the 90s.
I saw it coming in Las Vegas in 2007/2008, when oversupply of real estate/hotel rooms, home prices getting out of control, people taking out of loan beyond their capability - similar pattern.
It will take LV years if not decade to really come out of this mess.
I will do my part next time I visit =)
My comments may sound rubber stamp, but they are true! I worked in advertising for six years and know a thing or two about marketing. When a business gets into financial troubles due to customer fall out, you must examine and investigate what internal and external business changes might have brought it about. This is a clear cut case as far as I'm concerned. What attracted tourists to Las Vegas was the value offered by the hotel/casinos, as well as the gambling. Now that there is gambling in virtually 48 states, Las Vegas has lost the corner and exclusivity on it, and now more than ever has to make it's gambling experience more attractive and competative than the Indian casinos . Simple ...
CityCenter continues to operate at a loss. Until you see room rates hover near the $200 a night, midweek, NOT, $119/$129/$149, you'll know the hotels are NOT making money. When Bellagio opened in 1998 the midweek room rate back then was $139, what does this tell you?
"Since u are so smart what would u do to enhance business at the Casino's?"
Actually, I am planning on taking the exact opposite action of whatever Enviro proposes. As fatabbot mentioned, his comments are nothing more than rubber stamps of the same thing he has to say everytime. If he is as smart as you think he is (and and he obviously believes himself to be) then he should put up or shut up. Really I look forward to him opening a casino since he seems to know all.
Heck it could be a story on the 51s and he would whine about 6/5 blackjack. It could be a story on the price of gas and he would complain how the casinos are so expensive.
Really, I am looking forward to him putting up or shutting up.
The good news is the years of explosive growth in the Mojave may be over. Vegas and environs may be forced into sustainable economic policies and behaviors, if not, it will probably join the hundreds of other Nevada boomtowns that are now ghosttowns.
As ep says above, "... leaving us with steel skeletal structures dust blown virtually destroying whatever businesses are left standing in that area with NO foot traffic ..."
You just need to let the process play out. There are going to be more BKs, and I wouldn't be surprised if Harrah's ends up there. It's a healthy process, and it will improve the landscape. It just may take a little while.
It's the same with GM and Chrysler -- if the government hadn't interfered with their bankruptcies, there would be two viable auto manufacturers in their place. The property doesn't go anywhere, it just changes hands -- and the last buyer gets it at market rate. A BK allows all contracts to be reviewed and renegotiated. That's a good thing. The unions are going to have to participate in this restructuring as well.
The refinancing will end soon, and then we'll see some positive changes.
How is it "US gaming" anymore when most of the money is in China?
Tom Shermspun
Great Ruins of Las Vegas
Well, environ does seem to repeatedly say the same things but he has some valid points. I've known people to see 6:5 blackjack at Harrahs along with some slow drink service and vow to spend their money at home (out of state) for gambling. And they don't return. Harrahs isn't only bad for Harrahs, it's bad for Vegas when it does that. And resort fees at MGM alienate customers the same way. We need to be the best over time, not the ones who can squeeze money out of a slot machine the fastest. If a customer comes for a few days and loses $500 over that period but has a good time they will return. If they lose the money in a few hours they can, and will, find better alternatives. I'd say a lack of competition exists but it's really a lack of diversity anymore. The casinos are all starting to operate the same and that's also bad for Vegas.
environprotector is SPOT ON about Vegas's problems.
Shoot, I think I will just move to Las Vegas, looks like opportunity to me. Get in while its low, make something out of it.
Wall Street is taking the life out of Las Vegas.
We have seen it before (housing market).
CEOs and management must make the numbers our they are (Fired).Las Vegas must now compete with all other states with casino and its growing.
I follow Wall Street everyday and it is a rollercoaster.(-200 +300)each day.
We are following the trend of Japan.
Until Washington get our budget together nothing will happen.We know about Washington (SLOW).
"Tap Out" Vegas....
Actually, to further my point. In the 90s, Vegas went in a direction that Enviro would encourage Vegas to do now. (Cheap rooms to get the families in, cheap food to bring in the families, cheap everything... guess what it brought the families.) The rate of growth of gaming revenue was less than in the 00s, a time when Enviro and probably you Chaz, feel the "bean counters" took over.
Take a look at the GCBs "Gaming Revenue Report". Compare the periods of 1991 - 2001 (one complete business cycle) to 2002 - 2007 (a next complete business cycle). You will see that gross gaming revenue during the first cycle did not meet the expected revenue if Vegas had merely had the same revenue growth as the inflation rate. During the second cycle our revenue growth exceeded what would be expected when considering just inflation. (It is about a $4 billion difference over the 18 year period if we just increased at the rate of inflation the entire time.)
Cannon_Asesrb :
You are entitled to your opinions about how wonderful the corporate Las Vegas is, but I maintain that the tourists are staying away because they don't need to make the long trek here on expensive and delayed airlines, high gas prices, only to be fleeced when they get here. You can compare your "Gaming Revenue Reports" until you are blue in the face, and it doesn't matter in today's realities that people are looking for value for their scarce dollars. The casino house edge will always guarantee a profitable situation for the casino, even WITH loose slots, 3/2 BJ and giveaway rooms and food. How the heck do you think this city was built?? You don't give enough credit to the lessons of the past. Your staunch defending of the current corporate structure leads one to wonder if you may possibly be one of them?
And enviro, your staunch defending of the failed lessons of the past show that you are just whining because you aren't getting what you got in the past and its unfaiiiiiir.
I come with numbers, actual proven numbers - the kind we use so people in this state don't have to pay taxes, you come with a feeling. You don't give enough credit to the numbers of the past.
The reason why people are staying away, isn't that Vegas is fleecing them, its that they can't afford to come to Vegas. It doesn't matter if Pure, The Bank, LAX, Tao, or XS is charging $1000 a bottle or $5 a bottle. It doesn't matter if the casino has $1 BJ or $10,000 BJ. There are just not the people coming. (I am sure you would probably blame BU$HITLER for the crash in the economy while I blame Zero, Reid, Pelosi, Frank, and Dodd.)
Yes, yes, your love of "the way Vegas was build" leads one to wonder if you really are in the mob. After all the mob is what built Vegas. Even then, it wasn't until the corporate element (starting with Hughes) moved in that Vegas really came into its own.
And for the record Enviro, I am not a corporate exec, just a lowly auditor assigned to make sure the established rules are being followed. Making sure that you don't lose your money too fast, that the state gets it cut, that the feds know where all the money is going, and that your signature is on the buffet comp slip you whined for and got at the Sahara (not the property I work at, but probably someplace your cheap body would go because it is "Real Vegas") is properly signed by you per GCB regulations.
But ultimately Enviro, if your way worked (let's get back the the way things used to be ran in this mob town) more people would do it or more people would try it.
Prove it. Buy Poker Palace, The Opera House, or the Barcelona all up in North Vegas (heck I would go for the Barcelona since it is right across from Nellis AFB) or the Saraha, or any number of casinos just to show 'em. Make money hand over fist to prove to everyone that you know best. Create that business plan and do it.
Oh, a bit out of your price range (although Gawd knows why, after all it is foolproof, right? Investors will flock to your door, right?) go into an established casino and show how you can make them money hand over fist. After all you have all the answers, right?
Put up or shut up.
You know the biz is slow when you get bombarded with 3 days only booking at Mandalay Bay for $65/night and they throw in All Day Buffet.
We were there for the 4th. Booked two nights and they gave us $60 back for food and entertainment.
harrahs roulette table $10.00 minimum, next door $4.00 minimum. harrahs $6.00 beer next door $1.00. i stay at harrahs for free, gamble and drink next door. competition is indeed the way to go. car dealers figured this out years ago. real business people need to realize that not everybody is stupid, not in this day and age. give me something for free or less than most places and we will find you.
Ruark, that was nice. Thanks. Puts it all in perspective.
vegas casinos cater to the high end consumer for the most part when the majority of visitors are realistically low to mid rollers.
not many people want to pay $200+/nt anymore, nor can they afford it. food has gotten ridiculously overpriced in the past 10-15 years. i noticed the line at the mcdonalds at mgm was snaked past the emeril restaurant around 7 pm a few weekends ago and all of the restaurants were near empty.
as far as gaming goes, i will never play slots in vegas. i would never think of playing on a 6/5 bjack table either. i mostly play poker so i could care less about the other games. i might have to open a slot-less/table game-less poker room so people like myself don't have to worry about negative expected value games and surly pit bosses who hate giving comps.
@Bakersfield
Please send me your email adress so I will ty to get in touch with you in order to discuss any possible date to get together for lunch and some serious VEgas talk in the upcoming future ;) I am looking forward for such an interesting event and invite also other people participating our sometimes (oftentimes) very positive discussions about the situation.
Best regards from Switzerland
Boris
Bakersfield, you have made many valid points. I zero in on the outrageous salaries and bonuses for the top of the tier and their 'dissing' of the frontline employees, the ones that made them the money in the first place. Gaming companies do not want to share with the employees. They want it all for the top execs and look for ways to cut the wages and benefits of the employees to finance their own wealthy perks.
Cannon_Asesrb :
Looks like your outnumbered there Partner, Sell you rhetoric somewheres else where someone might agree with you..
Aren't the casinos still making money? They're just not making as much money as they'd like, right?
Sorry environprotector -- Cannon_Asesrd is right. There's nothing strange about being outnumbered -- just because you believe the world is flat, everyone is not going to agree with you. Learn something about supply and demand. When there's and endless supply of people who can do a job, it's not that tough of a job. Risk your own money, and you can make whatever you want, IF you actually know what you're doing. Or, you can risk everything you have, support hundreds or thousands of other families -- and then lose everything you had. It could go either way. Do you have any idea how big the supply of people who want to play that game is? Can you play? I imagine that if you hit the Magabucks jackpot you'd give 90% back to the club to help support the staff ... or, would you? It might be really easy to start feeling like it was yours. If you had actually earned it, that feeling would be even easier.
I've been to Vegas twice in the past year. I'd never visited before then. Wasn't a gambler. Thought it would be neat to go but I never seriously considered it. The first trip was specifically to see a one time show from one of my favorite bands. I was with eight of my buddies, most of whom had been before. The perfect trip for a bunch of guys who are married with kids. I'd played some poker and blackjack before and was very curious to check out the casinos and the "action". I even downloaded a craps app. and learned the basics. I never had any illusions as to how the gambling would end up. Casinos aren't in business to lose money.
It was the best time of my life. I played table games mostly, craps, poker, and a little BJ. Got to drink for free. As a novice gambler on a budget I wasn't comfortable playing the $10 tables. So I went where the gambling was cheaper. Played at IP and Downtown mainly. And though those casinos may be older and show wear and tear that doesn't exist at Bellagio and Caesars etc., I thought it was an excellent value.
Most of us had rooms at IP. And I wasn't disappointed with my room. Because I got what I paid for, a cheap room on the strip. It was clean so I was happy. Again, there was value.
Decided to come back this past April and bring my wife. Told her it was the funnest place on earth. This time I decided to spend more for nicer accomadations. After hours researching online I booked us at The Mirage. It had great remodeled rooms and 1-2 no limit hold 'em in the poker room. To my surprise, they even had $5 table games, albeit not all the time. The restaurants seemed in line with any I'd eat in at home price wise and again I thought it was an excellent value. Again, you get what you pay for.
So as someone from the east coast, North Carolina to be specific, I see Las Vegas as an excellent place to vacation and just have a blast. Vacation being the key word here. Gambling has become ubiquitous. If that's all I want I can drive a few hours and be on a gambling boat. Or a few hours more and be in Atlantic City. Vegas has something unique. A vibrancy I've never experienced anywhere else. THAT'S what it's true capital is. THAT'S what the casinos and city leaders need ever to be fostering. Coupled with reasonable value those are the core strengths that enabled Vegas to grow and flourish. The landscape has changed and expectations of what was to be or should be or should become are irrelevant.
Well since I am outnumbered surely you know you are ready to open up your own place and make a killing, right?
Funny how you never put up, and Gawd knows you can't shut up.
Right on the money mikalsan -- maybe it's only the people who live in this city who can be so obtuse.
They never miss an opportunity to turn a deaf eye or lend a blind ear ;)
This is what I spent on my last trip to vegas--
Roundtrip Greyhound fare from LA $60
Food $15
Gambling $15
Nathan Burton Magic Show $30
City Bus Pass $8
Total cost of one-day trip: $130. I ate at McDonalds instead of a buffet. I stopped gambling after a few minutes at City Center playing their penny slots that have minimum bets of 40 credits. I think I enjoyed the new Walgreen's next to CC more than Aria.
What has been the difference between Atlantic city and else where to visit vs Vegas. Customer service and the enviroment of the strip. I agree the bean counters need to move over and let the marketing people run the show. The customer must feel they got something in return for their business. Look at Disney they give family memories but they market it so it is appealing and a must have. The days of you have to go to Vegas at least once is slipping away due to the present management attitude. Once the credibality is lost it will take a long time to regain. The owners of the casinos and businesses in Vegas have to go back to listen to the customer and stop guessing at what they want to tell the customer what they want. Look at the car industry they did that and jacked up the prices on cars which cost a fortune to fix. So the customer went else where to spend (foreign cars) The air line industry is a mess and joke so the people comming to Vegas are all ready pissed off getting off the plane. Now getting fleeced by the taxi driver then the food cost and then the extra taxes and lousey service of casinos just re-enforces the customer to say don't go there. When I travel the last place I want to eat is McDonalds I can do that at home but if the prices are out of reach else where than I will not visit that area again. Vegas was built on cheap Food Drink and Rooms. Don't kill the golden goose!!!!!!!!!!!!!!
What I go to Vegas for:
Penny slots
Free drinks with minimal tip at the machines from cocktail waitresses or waiters (at the Rio)
Cheaper off-strip buffets
The Subway at O'Shea's for a late night snack and home of the only $5 footlong on the Strip.
Casino pools that don't have those stupid cabanas or loud club music
The weather
Cheaper transportation via bus system
What doesn't draw me there:
Dance/Night Clubs
Sit down expensive restaurants
Spas
Blackjack of any kind
Pools on the Strip that shut down at Labor Day
Full-price cocktails from those dumb bars anywhere in Vegas.
The Monorail
What keeps me from Vegas:
Expensive airfares
Tightening the machines was a terrible business decision on the Casino's part. People know how much playing time they should be getting for their money. They know if the slots are looser than the ones back home. As for video poker all you have to do is look at the paytables. Almost everyone in the U.S lives within a two hour drive of casinos. Well if the ones in Vegas aren't any more fun than the ones nearby why go through all the hassle of traveling. It doesn't help when the pop machine on your hotel floor wants $3.75 for a regular sized soda. Or the outrageous prices for food and drinks they are trying to charge nowadays. It's like they are only interested in ripping people off nowadays instead of providing value. Well surprise surprise people don't like that. When the current casino chains go bust maybe the new owners will realize from their mistakes.
You can tighten up the machines to a certain degree and players will still continue playing. However, there's the point when a player realizes that he has no chance to win anything, and that's usually when it's too late to keep him from walking and that's when it's over. The casino lost a guest to the competition. On the Vegas Strip, due to pulled-together conditions and only limited competition, the players usually find similar conditions everywhere and aren't surprised at all when they can't win. They can't win anything next door, either, so they simply keep playing till the money's gone.
As a Vegas insider, you know that you have options and alternatives, and that's the reason why on the Strip there are only very few players from Las Vegas playing. Mostly in the poker rooms where they hope to take out some inexperienced tourist passing time and distributing money among the sharks. But I have serious doubt that there are many locals playing slotmachines on the Strip. They know better than that.
From Switzerland
I think they came up with this new invention...."server controlled slot payouts". This is a very efficient tool to maximize casino profits, depending on the current situation.
What this technically means is pretty simply: If the casino is very busy (mostly weekends, Fridays and Saturdays, and before and on big holiday weekends), they can tighten up the machines as they know players are playing anyways. When business gets slower, they can loosen up a bit to keep the people in the casino. And if the casino is extremely empty, they can max-loosen-up, so it will start attracting other players.
Even if they don't do it and players believe that they're doing it, it's an effective marketing tool. Players will start playing during the low periods, in belief that they have a greater chance of winning. And the casino is making more profits altogether.
They're very smart to analize such stuff and maximize their profits....theoretically. Reality looks different,but the main problem there is, that's clear: There is no longer enough money available for the people to go gambing with. And on the other side, there's this over supply on hotel rooms and casinos, which we all know, and which in fact is very good for us tourists. We get all the good deals and freebies, and we pay much less than until 2007. So, even if there's a crisis going on, there's no reason to see but the very bad things only.
From Switzerland
BorisR --
Yeah, it's sort of like a restaurant that has two menus, one for lunch and one for dinner -- pretty much the same fare with a different fare.
Who'd have thunk!
SheetWise
Yes, and that's also the same with the lunch and dinner buffet prices. I mean, in the end, you can only eat until you're not hungry anymore, right? If you overeat, you will quickly see what happens...and it happens fast. And if you stick with the lunch buffets instead of the dinner buffets, you can save up quite some money and will accomplish the same goal. Alternatively, if you're still hungry late at nights, go to the coffee shop where they offer delicious steak-and-eggs specials for 3.99 almost everywhere in town.
I would recommend the Strip for some very few things you can't get anywhere else. But if you like gambling, that's definetely not the best place in town... unless you're a real big player and then the VIP rooms inside of the big casinos are something special. And in the end, baccarat has the same odds in all casinos. High Limit Baccarat is a game that you can play on the Strip, but it's better to refraim from playing the penny slots there.
From Switzerland
I'm not going to write a book here. My wife and I just returned from our trip to Vegas. My last trip to LV was 23 years ago. I would travel Vegas regularly to work at the Nevada Test Site and always looked forward to going.
This trip, here's what I found:
*Unbearably hot.
*No swimming pools to cool off and relax in without being gouged for money. (Unless you wanted to go to a standing-room only pool for the "beautiful people" meat show.
*Poor customer service everywhere. Everyone seemed to be angry and irritated if you asked for anything.
*Rooms had "resort fees" and other fees added to what were supposed to be good room rates.
*Food prices at the resorts were worse than the Hotels on Maui.
*Trying to find a good place to gamble for a while without draining you savings account was impossible...so tight it hurt!
*Etc., etc.
I could go on but I think you get the picture.
I have no intention of returning. Why would I? There are too many other places that have far more to offer for the money. I couldn't wait to get on the plane to leave.
Very unfortunate.