Bets are off--casinos feel economic pinch

[UpInArms]

Source: Reuters

NEW YORK/LOS ANGELES (Reuters) - Casinos, generally seen as recession-proof, are beginning to feel the pain of the slowing U.S. economy.

The gambling industry has expanded rapidly in recent years, as more U.S. states allowed casinos and existing gaming parlors expanded. Casino gambling revenue, the amount lost by players, doubled between 1995 and 2006 to $32 billion, according to the American Gaming Association.

But with the U.S. economy slowing, there are signs that Americans, especially those who frequent local casinos, are not in a betting mood.

"Competitive pressures in several markets do not appear likely to lessen in the near term," Oppenheimer analyst David Katz said in a report on Wednesday.

Harrah's Entertainment Inc, the world's largest casino company, and Boyd Gaming Corp (BYD.N: Quote, Profile, Research) both posted weaker quarterly earnings on Wednesday and both described the economic environment as "challenging."

Read more: http://www.reuters.com/article/bondsNews/idUSN2742665620080227?sp=true

[underpants]

1. they got about $1,000 of mine

Oh well it sure was fun

[Hugin]

3. PSA: Don't use paper money as a toothpick.

Valuable lesson I learned in another info packed LBN thread.

[dysfunctional press]

27. and it bears repeating...

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3200337&mesg_id=3200808

[Hugin]

2. It's a shame too... Unlike the Stock Market in most casinos you know what the odds are.

Even if the House has all of the advantages.

[joeglow3]

16. And yet, I am up a TON in the stock market

and down a ton in the casinos.

Seriously, the biggest disservice you give to working class Americans is by denigrating need to pay themselves first and invest in some good, low cost, index funds. It is the ONLY way (other than the lottery) that they will ever have a comfortable retirement.

[Hugin]

20. That assumes they make enough to invest for a retirement...

Well out of reach for the median American wage earner.

The majority are... Well, investing in something to eat tonight.

[BOSSHOG]

4. I would think the opposite would occur

A down economy would drive folks to the casinos in a desperate attempt to supplement their income. It breaks my heart seeing little old ladies sitting at the slot machines spending away their social security checks hoping to hit the jackpot. I don't gamble much but you can occasionally get a good meal at a casino.

[ingac70]

6. That is usually what happens in down turns of the economy...

but folks are getting the feeling this down turn is different... and it is. Folks are too busy trying to keep a roof over their head, gas in their car, and to eat than to engage in money blowing fantasy.

[BOSSHOG]

8. I think its different because

I heard a right wing jerkoff on local radio yesterday blathering on about how everything is just hunky dory with the economy.

[ingac70]

9. The country could collapse into Great Depression 2...

and those fuckers would still be going on about how great everything is.

I listen to the local RW shills in my area, and they are getting alot of calls from normally lock step sheep calling them on their praise of the economy. Hard to buy that shit any more when you are losing your job.

[InkAddict]

24. But for the cost of gasoline and a modest meal,

we enjoyed an evening out during the holidays at a nearby casino and came home to the good. Just counting what we spent to play the slots that night, it would have cost more for the four of us to go to a nice restaurant, see a show, and have nightcaps locally, but without the nice dividend.

One just needs to remember to enjoy games of chance responsibly; decide how much to risk and stick there--whatever happens, happens. We had fun and would do it again.

[tanyev]

5. Bill Bennett's been too busy at CNN covering the primaries.

He'll get back to Vegas pretty soon.

[Dr.Phool]

7. You'd never know it by the prices.

I've been looking for a reasonable package for a birthday party in Vegas in June. Prices are through the roof. And lousy airfares and flight times.

[Hawkeye-X]

12. How the hell anyone can afford to play table games

Pai-Gow Poker is a favorite of mine (incredibly slow poker, but you keep your money stabilized pretty much). They want $10 on betting, then at nights $25.

Drove me out of the casino and looking for a cheap one to play. Finally played at Frontier before they imploded it (Thanksgiving '06 - my last visit to Vegas)

[Skittles]

21. two of my coworkers gave up looking for that reasonable price

and flew standby with Southwest :o

[Lance_Boyle]

10. let me know when lottery ticket sales slow down

Casino gambling is tied to vacation/travel for most Americans. When travel slows, casino gambling slows. I would be much more interested to see figures on state lottery participation. The Vegas trip is a "big gamble." You're going to spend a lot on it, and unless you're seriously delusional, mob-connected, or a savant, you don't really think you're going to go home a millionaire. But the lottery tix - those are more ritual than church for lots of people, and after all who could pass up the chance to win big when all it costs you is a dollar to play...

[spinbaby]

14. Here it isn't vacation/travel

Here in western PA, we've got casinos springing up left and right competing with the older West Virgina casinos, which are fighting back by installing table games. We can gamble 24 hours a day in our own backyard!

[Hawkeye-X]

11. They *insisted* on banning Internet gambling

which I had to go off-shore to play online. Bah.

I haven't played an Internet gaming site for about 6 months, don't have any plans until they remove the ban.

Although I have plans for Memorial Day in Vegas, but it might be on hold, depending on how my dad feels.

[Bobbieo]

13. Are you including Indian casinos? They mostly entice locals and not vacationers.

Yes, you are - sorry!!!

[Hawkeye-X]

18. Well.....

I have actually seen Internet gambling from the Indian casinos (FullTilt is run by one, I think - yes, the Kahnawake tribe in Quebec)

I also support local Indian casino. We actually have plans to visit one in New Mexico - the San Felipe tribe's casino (Casino Hollywood) in a few weeks - that is the closest Indian casino in 6 hours drive, and we love New Mexico!

My local Indian casino in this state is actually the Ute Mountain Casino - a 9 hour drive from Denver. Las Vegas is 14 hours drive, so we're pretty close to most of the Indian casinos around here.

So I'm not exactly including the Indian casinos - I have played and supported online casinos from the Indian tribes, but under US federal law, they are also included in the ban.

This is the list of allowable US players on here..
http://www.pokernews.com/poker-faq/online-gaming-bill-poker-ban.htm

The only difference is the payout is mailed from off-shore accounts.

Hawkeye-X

[soothsayer]

19. Feh, it's easy as pie to still play on those online sites.

And of course the US horseracing sites (I use youbet.com) are still 100% legal

[w8liftinglady]

22. don't get me started,you guys-it's good they don't have online slots....do they?!

[ozu]

23. Yep

I play at Poker Stars and Full Tilt from time to time. It's not the gambling that was made illegal, but the facilitation of gambling by banking institutions in the transferring of funds. It made it a bit tougher to get money online when Neteller pulled out of the US market but there are other proxies that sprung up that are almost as easy to use.

[fascisthunter]

15. awwwwwwwwwww..... (nt)

[ConcernedCanuk]

17. Ya think all that "security" might be slowing down vacationers wanting to visit the USA?

.
.
.

Couldn't pay me enough to put with all that hassle, USA is Out-of-Bounds for this guy

Getting a passport, sharing personal info(even tho I know they don't share/lose that info) -getting wanded, going through my belongings to see if I brought too many toiletries - nope, not gonna happen.

Looks like they are in for a rough ride.

From the posted Article:

/snip/

Boyd, which is building a casino resort called Echelon on the Las Vegas Strip, said net income fell to $31.2 million, or 35 cents per share, from $56.3 million, or 64 cents per share, a year earlier.

(OUCH! - that's a droop of 25Mil, hardly pocket change!)

/snip/

Fourth-quarter earnings at its downtown Las Vegas properties, aimed at tourists, posted a 13.8 percent drop in profits while profits fell 13.2 percent at Boyd's casinos in the U.S. Midwest and South, as its Blue Chip casino in Michigan City, Indiana, suffered from new competition.

/snip/

Growth was sluggish at Harrah's other U.S. casinos. In Louisiana and Mississippi, revenue rose just 0.7 percent, while revenue at its properties in Iowa and Missouri fell 2.6 percent.
__________________________________________________________________-

OR maybe the payouts to the clients are higher now?

yeah, right.

[sarcasmo]

25. Good, the one thing still being built in our crappy Michigan economy is Casino's.

What a Depressing place, I used to drive a customer to a Casino and wait on him to loose his money and then take him home broke. The place was filled with many people who had no business giving the Casino their money.

[pinniped]

26. I'll be in LV on Monday to contribute my two bits.

.

[AnnieBW]

28. Glad I sold my Harrah's stock

I was impressed with them after their response to their employees affected by Katrina, and bought their stock. Did good with it, too. Now I'm glad that I got out when I did.