Nevada Casinos Big Losers in 2011
The adage "the house always wins" might be true in theory but not always in practice, with the $4 billion loss absorbed by Nevada casinos in 2011 a testament to that fact.
The adage "the house always wins" might be true in theory but not always in practice, with the $4 billion loss absorbed by Nevada casinos in 2011 a testament to that fact. It makes the third straight year that the 256 Nevada casinos overall are in the red, although overall revenue did increase from 2010 to 2011 for the first time in five years.
Like other US casinos, those operating in Nevada have faced very difficult operating conditions as the lingering recession and high unemployment rates throughout the US have led to fewer tourist and gambling dollars making their way into casinos.
Las Vegas casinos have fared slightly better in 2011 due to an uptick in revenue from non-gambling operations such as food, entertainment, and shopping, with convention traffic to Las Vegas steadily increasing and showing signs of life. The situation has been more grim for Nevada casinos outside of Las Vegas, which have fewer entertainment options to entice tourists from the US and abroad.
The situation in Nevada is in stark contrast to other gambling areas such as Macau and Singapore, which have both eclipsed the famed Vegas Strip as far as total gambling dollars brought in and are projected to continue to log strong growth in the foreseeable future as more and more Asian gamblers stay close to home, especially lucrative high stakes Baccarat players.
Some Las Vegas casino groups such as Las Vegas Sands and Wynn have operations in Macau and Singapore, which have softened the sting of continued losses for their US-based properties.
Both Nevada and New Jersey (whose own Atlantic City casinos are also struggling mightily) are contemplating shoring up some of their brick-and-mortar casino losses by possibly offering intra-state online poker sites for residents, with both states taking preliminary steps to either pass legislation authorizing online sites or setting up agencies to regulate online gaming if US laws change to allow it.
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