While investors have shown great eagerness to jump back on gaming stocks, as every bit of decent news is met with a quick spurt of buying, a noted gambling expert says the casino market in Las Vegas may be down for the foreseeable future. Rachael Rothman of Wedbush told her clients that growth in supply of Vegas rooms will mean an increase in customers will be needed just for casinos to break even.Rothman says demand for rooms would have to increase at least 10 percent each year for the next three years just to keep profits even.
Gaming analysts have also speculated that consumers who have changed their habits during the recession may be hesitant to return to the older methods of entertainment.
"Regional gambling has used the opportunity presented by limited budgets to entice patrons who might otherwise gone to a destination resort," says OCA gambling authority Sherman Bradley. "Now, many of those players may find permanent advantages to playing closer to home, as the gaming in many instances is virtually the same, without the expenses of Vegas.
"Add in the ease of playing at online casinos, and the expected passage of the Barney Frank bill, and demand may continue to be limited even after economic recovery has begun."
Las Vegas is adding thousands more rooms with the construction of CityCenter and smaller resorts on the Strip. While rooms are currently occupied at a high rate, casinos have been discounting prices to keep traffic high.
Published on July 17, 2009 by VirginiaMaddox
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[Source: Las Vegas Casinos in the News]
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