Latest Report Shows Las Vegas Casinos Headed For Financial Disaster

People go to the state of Nevada for two things, to have a shotgun wedding, and to gamble. A new report indicates that they did not do much of the latter in 2008.

The Nevada Gaming Control Board released a report on Friday that shows that major hotel-casinos in the state had their net income slashed by over sixty five percent in 2008. that figure is a scary one for a state where the economy is largely reliant on its casinos.

"This reflects both the national and global economy. During the first half of the fiscal year, revenues were still growing. But the second six months was the start of our current decline and we saw a material downturn," said Frank Streshley, a Control Board Analyst.

Increases in cost also played a big role in the lower net income. Insurance prices soared in the past year, and so did food and fuel costs. Legal expenses also contributed to the poor figures.

It does not appear that 2009 will be any better for Nevada casinos. There is a widespread opinion that the economy will still get worse before it gets better.

In addition to the economy, competition is growing stronger by the day. States around the country are expanding their gambling laws to include casinos, meaning people no longer have to travel to Las Vegas to gamble.

January 17, 2009
Posted By Tom Jones
Staff Editor, CasinoGamblingWeb.com
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