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Vegas Casino Hit Hard by Economic Woes

The bright lights of Las Vegas have been sparkling a little more dimly in recent months, thanks to the faltering U.S. economy’s effects on tourism and gambling. Both Vegas and Atlantic City has been slammed by the crisis of recession, with playership and profits both on the decline. Fewer players are flocking to play the slot machines in Vegas casinos, and those that do show up are spending less during their visit. Unlike A.C., however, Las Vegas had been doing well before times got tough – so its performance is interesting to watch and to evaluate as a cause-and-effect study of the industry.

The Hard Rock Hotel and Casino lost one hundred eight million dollars in a property value decrease last year, as well as a net loss of two hundred eighty million. The resort was forced to cut eleven percent of its employees as a result. Despite these setbacks, however, the Hard Rock is moving forward with a seven hundred sixty million dollar expansion encompassing two new hotel towers, a spa, a casino floor expansion, and a concert hall. One of Vegas’s biggest names, Harrah’s Entertainment, is said to be teetering on the verge of bankruptcy. The financial troubles at the main office have put a stop to major construction projects in progress at Harrah’s hotels and casinos on the Strip.

Life still goes on in Vegas, however – entrepreneur Phil Ruffin has been given the all-clear from the Gaming Control Board to buy the Treasure Island casino from MGM Mirage. Ruffin stated that he expects his company will “do well” with Treasure Island, despite the tough times at present.

Back to March 2009 Archive.