Tough Times??

It was reported this week that Las Vegas is having a hard time weathering the current economic storm.

The City which not so long ago considered itself to be recession proof is tking a much bigger hit that it ever expected to. So far this year, four casinos have filed for bancruptcy including Tropicana Entertainment, which defaulted on (£1.35 billion) debts.

In recent years the casinos have diversified away from pure gambling houses into shopping, restaurants, expensive boutiques and expensive entertainment, and it is these areas that are showing the biggest drops in revenues. When the casino giants on the strip are showing losses then maybe it is time to panic?

Now that 60% of casino revenues are generated by non gaming activity, it is only natural that they will become more vulnerable to consumer spending cutbacks, especially at the top end of the market.

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