Las Vegas remains the undisputed gambling capital of the world, but increased competition from new luxurious casino resorts across the nation and around the globe is beginning to take its toll. When you add in the revenue generated by real money gambling online at various internet casino sites, outside competition for Las Vegas as well as the entire state of Nevada is at an all-time high.
According to a recent Forbes report by David Schwartz posted on its website, the positive revenue trends in Las Vegas casinos that were prevalent earlier this year have reversed course with some returns dipping into the red over the summer months. It is too early to tell if this is a growing trend or just a blip on the radar screen, but the level of concern among the biggest players in the casino gambling industry is starting to rise like the current outside temperature on the Las Vegas Strip.
Why Is Las Vegas Feeling the Heat of Lower Casino Revenues?
Earnings reports released last week pointed to softer than expected numbers for two of the biggest players in town. MGM Resorts International and Caesars Entertainment were each faced with lower earnings and casino revenue for the second quarter of 2018 than the initial projections. Each company also predicted that business conditions could remain tough through the third quarter of this year.
One of the most important financial measures for Las Vegas casino operators is referred to as RevPAR or revenue per available room according to the Forbes report. This is how operators will measure just how profitable a Las Vegas casino really is. The overall RevPAR figure for the Strip reported a decline of four percent. Through the month of June, the decline in overall tourism in Las Vegas along with room occupancy was measured at one percent. There was a three percent decline in convention attendance, which raised concerns with Las Vegas casino operators given the spending level on hotel rooms and meals this group generates.
The broader effects of these declines could be felt on Wall Street with certain Las Vegas casino stocks dropping as much as 24 percent in value. For a town that was built on gambler’s dreams of getting lucky and hitting it big on the slot machines, industry insiders are beginning to wonder if Las Vegas casinos have finally pushed their luck a bit too far.
Check Out Full Reviews Of Las Vegas Resort Hotels
- The Palms
- The Rio
- Four Queens
- Golden Gate
- The Plaza
- Las Vegas Club
- Arizona Charlie’s Boulder
- Boulder Station
- Eastside Cannery
- The Longhorn
- Gold Coast
- Rampart At Summerlin Resort
- The Red Rock
- The Sun Coast
- Wild Wild West
- Cannery Resort
- Fiesta Rancho
- Jerry’s Nugget
- Santa Fe Station
- Silver Nugget
- Texas Station
- The Wildfire
Will US Online Gambling Laws Help Las Vegas Casinos Revenue?
A big part of the reason why the bloom may be off the rose for Las Vegas is the overall expansion of the casino industry. New Jersey got back into the game this summer with the grand opening of two newly renovated Atlantic City casino hotel and resorts located on the historic Boardwalk. The Garden State has also expanded into legal sports betting at land-based racetracks and casino resorts. More recently, MGM Resorts opened its first two legal sportsbooks at a pair of casino properties in Mississippi.
Las Vegas continues to rebrand itself as more than a gambling town. However, it could take some time before these marketing efforts start to attract visitors to the Strip as an upscale eating, drinking and shopping destination.
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