Las Vegas Faces Its Deepest Slide Since the 1940s

[sonomak]

Source: New York Times

There are many cities across the country that are beginning to see the first glimpses of the end of the recession. This is not one of them. The nation’s gambling capital is staggering under a confluence of economic forces that has sent Las Vegas into what officials describe as its deepest economic rut since casinos first began rising in the desert here in the 1940s.

Even as city leaders remain hopeful that gambling revenues will rebound with the nation’s economy, experts project that it will not be enough to make up for an even deeper realignment that has taken place in the course of this recession: the collapse of the construction industry, which was the other economic pillar of the city and the state.

Unemployment in Nevada is now 14.4 percent, the highest in the nation and a stark contrast to the 3.8 percent unemployment rate here just 10 years ago; in Las Vegas, it is 14.7 percent. August was the 44th consecutive month in which Nevada led the nation in housing foreclosures. The Plaza Hotel and Casino, which is downtown, recently announced that it was laying off 400 workers and closing its hotel and parts of its casino for eventual renovation, the latest high-profile hit to a city that has seen a steady parade of them...

What is worrisome now is the nature of this economic downturn, when many people saw the value of their retirement funds or homes collapse. Economists say people are less likely to gamble as freely as they have in the past, particularly baby boomers, who may now be rattled about their retirement years. In one sign of this, while there were more people coming to Las Vegas in recent months, gambling receipts have remained stagnant.

Read more: http://www.nytimes.com/2010/10/03/us/03vegas.html

[OmahaBlueDog]

1. To me, there are three factors working against LV here

1) It's been overbuilt -- both in a residential sense, and in a gaming industry sense.
2) With the notable exception of sports betting, the gaming genie is out of the bottle. Most Americans are now no more than a few hours drive or a short plane flight from legal gaming -- be it Native American casinos; barges/riverboats; horse tracks with slots and poker; online gaming; or other states with legal casinos.
3) Other than the high rollers, who has money for that trip to Vegas?

[MurrayDelph]

4. I'm a low-roller in L.A.

and the table stakes are too high at the cheapest tables in Vegas. And for some reason, the fact that the tables are empty at the current stakes does not translate into "lower the stakes and make it up in volume"

Which is why instead of my annual trip to Vegas I have been making stopovers in Reno.

[northernlights]

15. and seriously, if I were a "high roller"

I'd be in that little European gambling place....

[Dr.Phool]

23. You've got a fundamental realignment of leisure spending.

Like you said, other than the high rollers, who can go to Vegas and gamble?

People are holding on to their money for a rainy day, instead of figuring they have it to blow.

My sister is a cocktail waitress at a casino. Her husband WAS a mortgage broker there. He's laid off now, and she's only working a couple of days a week, when she can. And she has a lot of seniority in a union hotel.

Hell, I used to go to Vegas regularly. Now, I have a casino boat 10 minutes from me in Florida, and the Hard Rock in Tampa close by. I don't go to them either.

[Sen. Walter Sobchak]

2. Booking the company christmas party...

And it is literally cheaper for us to fly everybody to Las Vegas (from Costa Mesa, Riverside and Burbank) and do it in Las Vegas than to host it just about anywhere worthwhile in Southern California. The hotel rooms are basically free with the 300 guest party.

[lysosome]

3. check out the pawn and consignment shops while you are there.

They are a great deal even in good financial times.

[comtec]

16. especially in poor economic times

im very sad to say a love of mine has had to sell most of his stuff...

it's seriously heart breaking

[denbot]

5. Vegas would be the perfect proving ground for a bullet train.

The casino owning corporations and Nevada could help finance a route connecting Las Vegas, San Francisco, and Los Angeles. Las Vegas needs a fast low cost way to get visitors. California needs to ween it's self from autos. Plus a bullet train to Nevada could be the first leg of a high speed coast to coast rail line.

[OmahaBlueDog]

7. There's been talk of an LA/Vegas bullet train for a while

http://www.lasvegassun.com/news/2009/feb/17/Bullet-train-to-LA-is-stimulating-idea/

http://en.wikipedia.org/wiki/California-Nevada_Interstate_Maglev

http://travel.latimes.com/articles/la-trw-lvtrain19mar19

To me, another bullet train concept that makes sense is Atlanta to Orlando to Fort Lauderdale/Miami. Quick, low cost transport connecting major air and cruise hubs, and getting traffice cheaply in and out of the Orlando theme parks.

[Sen. Walter Sobchak]

9. right... Victorville...

I would imagine 90% of the population of the L.A. basin is closer to an airport from which they can catch a cheap flight to Las Vegas than they are to Victorville!

The only reason people from L.A. go to Victorville is to buy meth.

[MurrayDelph]

22. I always thought the only reason people from L.A. go to Victorville

is because it's at least a four-hour drive to Vegas, so they have to stop somewhere and pee.

[Sen. Walter Sobchak]

8. that is absurd, its a $49 flight from just about any California airport.

look how well the vegas monorail works...

[Bluenorthwest]

13. The airports are the issue not the price or flight time

In my business, many people used to fly to Vegas to catch a show or a meeting and be back in LA quickly. Now the airport routine makes that very difficult without private aircraft. The time is extended, the flights unpredictable. It put a crimp in the giddy up for sure. Parking, security, waiting, delays, finally flying, landing, taxi, disembark, spendy cab ride into town, traffic from the airport, Strip like a parking lot. Yeah, flying is sooooo smooth! You leave from sort of near your town and arrive sort of near your destination, and are in instant need of ground transportation to actually arrive. A train gets you where you are going.
I wonder if you are counting the transfers, ground trans, tips, time spent waiting and all of that in your cost breakdown? In my biz, a day lost is worse than any money spent, many times. It costs me about 75 dollars to get to and from the airport. That is part of the price of the flight. They charge for bags, and for a party, many will want extra bags. If they charge, add that too. If it is a Party, you need to cover all of those expenses, a guest should not pay more than gas to and from a local place. A host who 'saves' by passing on costs to the guests is a bad host.
Just some thoughts. A burden for Christmas, no one wants that. Travel can be a chore if it is not really well done and well paid for.

[Sen. Walter Sobchak]

18. and getting your ass to Victorville is preferable?

If you avoid LAX it isn't that bad,

[comtec]

17. as a rule, here in europe, if it takes less than 4 hours, the train is better

because even a domestic flight demands 2+ hours arrival ahead of time.
plus all the extra bullshit they add one (9/11 tax, bs tax, i farted tax)
a train or boat is often as fast if not faster at 1% of the stress level.

example, I was going to goto a con in germany.
The plane ticket was 200+ and 4 odd hours (wait time, security, etc)
the train was 2-3 hours and cost 95 euros round trip, to my city! (forgot to add the 1+ hour travel time to the airport)

so all in all i saved at least 3 hours + travel time from the airport to the city that the convention was in.... vs just taking the train.

A bullet train to vegas - aside from the billions in jobs created by constructing the line - will employ hundreds initially, and probably maintain 100+.

PLUS you can travel to vegas without all the hassle of the airport, arrive closer to the casino, or whatever) you want, and be less stressed overall.

Finally, here in europe there are train cars that sell food n drinks to people. those cars not only have to be staffed, but they need their food from somewhere.

open your tiny mind for a moment for the people who will be employed and prosper because of this.
the little people.
I don't know if you ever consider them, being so much better than the rest of us.

but this rail means jobs for a lot of people.
Maybe nothing in the grand scheme of things, but it will matter to those people!

whatever the investment, it will mean livelihoods for people in a sustainable way.

and since it really is a pilot program in disguise, it'll remind the rest of us, with it's success, the value of a public rail system in this country.

[Sen. Walter Sobchak]

19. In my experience in Europe flying is almost always cheaper

Atleast for me flying between Paris Orly and London City, which are again a fraction of the hassle of the larger airports.

And how does this scheme create a ton of jobs when every last bit of infrastructure will have to be imported from overseas, including much of the labor. An indigenous American HSR industry isn't exactly going to spring up in the timeframe the politicians are talking about.

[liberation]

6. I'd be ironic if the economy was to kill Las Vegas...

... Before Las Vegas kill the Colorado river.

Capitalism taking care of the same problem it helped create... in a live by the sword, die by the sword type of deal. LOL

[Bravo Zulu]

10. Las Vegas needs to diversify,

look what happened to Pittsburgh with the steel industry and Detroit with manufacturing automobiles,it is human nature for people to buy the cheapest product or travel to the nearest destination with the same amenities that have a better price!

[Stryguy]

11. I was just in Vegas

I was just in Vegas 2 weeks ago and it all seemed like the same old place to me. I'm going to guess the casinos went from making insane shit tones of money to just tones of money. I still saw the $50 a hand blackjack tables at Bellagio full of people. I didn't notice any of the casinos had empty closed up tables.

The Plaza Hotel in old downtown needed to close down and remodel. I don't think it's timing had anything to do with the economy, more to do with it's 80's style decorating. I don't doubt for a second the unemployment rate is reported correctly but I don't believe for a second that it's the casinos that are hurting. Of course, leave it to the Casinos to whine enough until they get a tax break or something given to them.

My friends and I won't waste our time at some rinky dink Casino in my home state. We want the atmosphere and weather of Vegas more than the gambling.

[billlll]

12. gambling is robbery

Casinos breed burglars

LV can't survive a quake...TWchannel

LV a drag on human progress.

[Bluenorthwest]

14. 'Sin City' with a right wing State Government does not work.

The promote 'what happens in Vegas stays in Vegas' but they also have right wing policy and laws that are worse than most cities that do not promote themselves as hedonistic playgrounds.
Vegas has become known as a place where people get arrested, and that news does not 'stay in Vegas' at all.
Come Party with Sharon Angle! Party down! In exactly the way we tell you to, where we say. They have nothing that is not everywhere, drinks and games. Oh, they have oven like heat, lots of traffic, noise, and the atmosphere of a carnival in a totalitarian dictatorship. There is no package deal cheap enough to make it sound good.

[TheEuclideanOne]

20. DAMN YOU OBAMA!!!!

You had to make that comment about people going to Las Vegas, didn't you. This is YOUR fault!!! :)

As I type this out, I can seriously see the Becks and Limbaughs actually making this point. Yes, for the record, I am just goofing around.

[bemildred]

21. Sigh.

I can certainly sympathize, but Las Vegas is a lousy place to build a city.

[Panaconda]

24. Casino economy

Casino results.

How's Lake Mead doing?

[independent_voter]

25. i spent a lot of time there on business in 2003

and frankly, i just did not get it

build, build, build, and yet they still came

but was there last year, and saw stalled construction sites everywhere

once again learned that reality always takes longer than you think it will to hit, but it always does eventually