The Nevada casino numbers for the month of May are in and it is not pretty! Strip revenue was down 16% representing almost $100 million less in business over last year. The news pounded casino stocks with MGM dropping more than 20% and Wynn taking it in the shorts to the tune of 10%. Many of the casino stocks are trading at levels not seen in 2 or 3 years.
This is just more bad news for the Strip.The way they spent money building the latest wave of resorts is coming back to haunt them. They have relied on the "non-gaming" business to rake in the bucks and that money just isn't there anymore. Less people are coming and those that do are spending less money. Out goes the dinner at Emeril's or Wolfgang's when for 1/4 of the price you can eat at the coffee shop.
Vegas got away from its roots in the effort to become all things to all people(with cash!) The casino became an afterthought and they still apparently don't get it(see my May 19th comments on the new City Center hotel "ARIA.".) They need to get back to offering a good deal on a vacation and good odds in the casino. It is Vegas. Sell it for what it is and stop being something it's not. Otherwise this downturn is going to last longer than anyone wants to believe.
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