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Las Vegas has the jitters as casino revenues fall

Earlier this week the news of the soft numbers rocked Wall Street, prompting a massive sell off in casino stocks that left no player unscathed. With more and more casinos and lavish integrated casino resorts appearing across the country, and far closer to the average gambler’s home than Las Vegas, there are fears that maybe the whirlwind of enthusiasm that has enveloped Las Vegas as the most recent recession has faded into distant memory may well be winding itself out. With consumers having ever greater choice even closer to home, travelling to the desert Strip may well be fading in attraction. Add to that the rise in online gambling options which require no travel at all but can offer players exceptional bonuses and giveaways that brick and mortar casinos simply can’t afford, and the picture starts looking a lot less rosy for the big boys in Las Vegas. Moreover, according to Forbes, many observers have pointed to ever increasing resort fees, from paying for parking, to steep buffet prices (the breakfast buffet at Wynn now costs $20.99, while pretty much the same breakfast buffet at the Palace Station off the Strip runs $7.99. As Historian David G. Schwartz pointed out, is that supposedly because Wynn offers $13 more of a breakfast buffet experience than Palace Station? Those must be some hashbrowns!) to outrageous convention catering prices (a single Brazilian coconut shrimp at The Mirage costs $9.50, plus an 8.25% service tax, plus a 19% gratuity and 4% service charge… that’s a whole lot of money for a single shrimp!) and a slowly rising house edge for casino games, the Strip’s new nickel and dime policy, while adding small change to casino revenues, may well be backfiring as visitors choose to gamble closer to home. Industry observers also point out that there is a geopolitical dimension contributing to the downturn. With international visitor numbers declining nationally in Trump’s America, so too the drop has touched Las Vegas, where much like convention goers, international visitors are known to spend significantly more on non-gaming activities, from food, to rooms and entertainment, than the average domestic visitor.

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