Las Vegas Casinos Continue Climb Out Of Economic Recession
The Las Vegas casino gambling industry is relied on heavily by the state of Nevada to provide tax revenue, employment opportunities, and other economic benefits to the state. In 2011, for the second consecutive year, Las Vegas gaming revenue was up from the previous year. That is news that is being received well within the gaming industry.
Due to the increase in revenue, companies that had previously enjoyed the spoils of the Nevada gaming industry are starting to rebound financially. Among those companies is MGM Resorts, which released its fourth quarter revenue figures this week. MGM revenue was up over 50% in the fourth quarter of 2011. Despite the large gains, the overall profit still declined for the quarter thanks to expenses.
Las Vegas has always been the center of the US gaming industry, and prior to 2008, it had been assumed by many that the casino industry was immune to the economic climate of the country. The 2008 recession, however, disproved that theory, with many large gaming operators forced to close casinos around the US in the aftermath of the recession.
Las Vegas Sands, MGM, Wynn Resorts, and others have rebounded nicely in recent years. The boom of casino gambling in Macau and other Asian areas such as Singapore has helped the companies stay afloat. Their bread and butter has always been Las Vegas, and the fact that the industry is coming back around in Las Vegas is music to the ears of gaming executives.
"(Gambling) is coming back in Las Vegas," said MGM CEO Jim Murren. "Our table play is improving nationally and internationally. Our slot business has been really, very strong."
Competition has grown stiff around the US with many states expanding their gaming industry in response to the economic recession. Las Vegas has taken the revenue hit for the expansion, but Murren believes the fate of the Sin City casinos is about to improve.
"Las Vegas will have, in general, not just ourselves, but the market will have a much better year in 2012 because the recovery in revenue is more broad-based next year, and everyone, including ourselves, are managing our costs."
February 22, 2012
Posted By April Gardner
Staff Editor, CasinoGamblingWeb.com
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