Casinos.co.uk: Casino News Archive
Tuesday 27th July 2004
Las Vegas boom continues despite pessimistic fears
Following a very successful period revenue wise, there had been fears that the action being seen by Las Vegas casinos would decrease. Quarterly figures just released show that business is continuing to thrive. The two largest presences in the strip, MGM Mirage and Harrah’s Entertainment both saw increases in profits in the second quarter of the year-which has resulted in predictions that the third quarter would continue the trend.
MGM profit rose 95 percent in the last quarter, and offered the theory that this recent period of prosperity for Vegas casinos could be attributed to the fact that the high spenders in both the US and Asia are not only gambling more but also becoming faster in paying debts, mainly as a result of the economy proving to be good for business at the moment. Chairman and Chief Exec commented that: “Their businesses are doing well. When they are doing well elsewhere, they are more willing to pay when they lose here. I haven’t seen it really quite this good ever”.
Meanwhile Harrah’s quarterly profit rose by 18 percent, and its soon to be acquired company Ceasar’s Entertainment Inc has recorded a quarterly revenue figure at over three times that of the same period last year. So it seems that the expectations that the positive trends would discontinue are, at least for the time being, unfounded. President and Chief Financial Officer of MGM Jim Murren commented on the pessimistic predictions that: “It happens at least twice a year. The view that Las Vegas has done so well it can’t do better is a logical view. It seems to make sense on the face of it…the current trends suggest it is not true”.
Source:OnlineCasinoNews
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