• 11 hours Is $90 Oil Possible? An Interview With Jay Park
  • 1 day Billions Of Dollars Are Flooding Into The Flying Taxi Space
  • 1 day Is This The Most Important Energy Project Of 2020?
  • 2 days Startups Are Dying To Give You A Better Death
  • 2 days U.S. Restaurants Are Struggling With Rising Labor Costs
  • 3 days The Banking Bonanza Is Just Getting Started
  • 3 days How The Trade War Ceasefire Will Impact The Energy Industry
  • 4 days Who Is The Most Dangerous Person On The Internet?
  • 4 days SoftBank Sees First Quarterly Loss In 14 Years
  • 6 days Prepare For An Oil Glut In 2020
  • 7 days Why A Strong Yuan Is A Promising Sign For The Trade War
  • 8 days What Would You Sacrifice For A Debt-Free Life?
  • 8 days Shareholders Urge Major Bank To Stop Funding Fossil Fuel Companies
  • 8 days Tariffs Are Causing A Slowdown In U.S. Manufacturing
  • 9 days The Great Silicon Valley Migration Has Begun
  • 9 days 3 Oil Stocks Paying Out Promising Dividends In 2020
  • 10 days How Fractional Trading Is Democratizing the Stock Markets
  • 10 days Why Smart Money Is Looking To Short Aramco
  • 10 days Gold Major Looks To Hike Dividends By 79%
  • 11 days Three Reasons Precious Metals Are On The Rise
What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

  1. Home
  2. Markets
  3. Other

Las Vegas: Gaming Revenue Down 16%

Going back to 1970, there has only been ONE OTHER time (since this recent economic downturn) where gambling revenues actually fell -- in the aftermath of the Sept. 11 terror attacks. During that timeframe (2001-2002) gaming revenue fell 1 percent.

So how does the downturn today compare to 9/11?

On the Las Vegas Strip, gaming revenues were down 16.4 percent in May 2007 and down 5.4 percent for the first five months of 2008.

Clark County as a whole was far worse, including a 29 percent drop in North Las Vegas and a 30 percent drop in the Boulder Strip, which includes some casinos in Henderson.

This issue is causing gaming tax collections to plunge -- down 22.8 percent YoY -- the worst drop in at least 10 years -- exacerbating State budget woes.

"This is an incredibly difficult time for the state of Nevada, and it appears that we may need to prepare for an additional shortfall to our general fund for the fiscal year that just began," Gibbons said in a statement.

BUDGET BREAKER: Gaming tax collections sink

What's really hard to comprehend is: After 9/11, we saw thousands of hotel/casino layoffs -- yet, even though this downturn is much worse, we've seen very few to date. I therefore expect to see massive casino layoffs between now and Christmas 08 -- it's only a matter of time, as these highly leveraged institutions are taking a beating in the equity markets and will soon need to cut costs and improve bottom-lines.

For those of you who haven't already done so, take a look at these posts for more LV Downturn info:

Las Vegas Downturn Gathering Momentum

Economic Troubles Affect the Vegas Strip

Regards

 

Back to homepage

Leave a comment

Leave a comment