Last week’s earnings reports were difficult to take for the big Las Vegas-based casino operators. Caesars Entertainment and MGM Resorts International, which each own multiple properties on the Vegas Strip, both reported soft numbers for the second quarter. Whether this is a temporary decline or the start of something bigger remains to be seen, but insiders predict they’ll face more challenges in the third quarter.
Dr. David G. Schwartz is the Director of the Center for Gaming Research at UNLV and happens to also be a former casino employee.
“Well, they’ve definitely felt the pinch in the gambling and they’ve made their peace with that, but that’s why they started doing more stuff. Like the T-Mobile arena all the celebrity chef restaurants and all the entertainment, but even that revenue is going down and that’s why they’re really starting to panic.”
He goes on to say many observers blame the increased resort fees, paid parking, and other “nickel and dime” tactics that have become common on the Strip and it’s taken away from the value of a Las Vegas vacation for many people who loved visiting the city because the costs are simply too high.
But, Sand says don’t write Vegas off just yet. It’s weathered worth slumps before.
Sand was a guest on McIntyre in the Morning.
Sharon Reardon, KABC News