On October 13th, 2008, Wynn Resorts expected that when the full figures from the 3rd quarter are released to the public, it will show that it will show quite a drop from the same period last year. If that is the case, nobody will be really surprised. Las Vegas has been experiencing one of the toughest economic upheavals that they have ever seen for their casino facilities. Profit has continued to drop at most casino facilities on the Las Vegas Strip.
Wynn is preparing for the possibility that when the results released, they could post a loss of $2 million. While that is not good news for Wynn, there is still some good new. The profit loss in Las Vegas is like to be cushioned by the casino facility that the organization has opened in Macau. Some analysts actually believed that Wynn, despite experiencing profit setback, will be outperforming other casino facilities in Las Vegas.
Robert LaFleur, an analyst from Susquehanna Financial Group LLLP said that the overall Las Vegas market seem to be much in worse shape compared with the Wynn Casino. There are numerous reasons why Las Vegas casino facilities have seen drop in revenue over the past year. The current economic condition in the United States is one of the main reasons but increased in gaming competition across the U.S. is also a factor. Many states are moving towards allowing legalizing casino gaming in their areas. With each new casino facility that goes up, more business is drained away from Las Vegas.
11/16/2008 07:20 PM
Davis Coulter