Wynn Resorts Bracing For Poor Third Quarter Casino Profits

On Monday, Wynn Resorts Ltd. let a cat out of the bag that had already escaped. They expect that when the full figures are released from the third quarter, that there will be a significant drop off from the same quarter last year.

If that is the case, nobody will be extremely shocked. Las Vegas has been going through one of the toughest economic times that they have ever seen for their casinos. Revenue has continued to fall at most casinos on the Las Vegas Strip.

Wynn is bracing for the possibility that when the numbers are released, they could post a loss of $2 million. While that is the bad news for Wynn, there is some good news. The loss in Las Vegas is likely to be offset by the casino the company has opened in Macau.

Some actually believe that Wynn, although down, will be far outperforming other casinos in Las Vegas. "Certainly the overall Las Vegas market seems to be much worse than Wynn," said Robert LaFleur, an analysts at Susquehanna Financial Group LLLP.

There are many reasons why Las Vegas casinos have seen decreased revenue over the past year. The current economic situation in the United States is the main reason, but increased competition across the country is also a factor.

Many states are moving towards legalizing casino gambling in their areas. With each new casino that goes up, more business is taken away from Las Vegas.

October 14, 2008
Posted By April Gardner
Staff Editor, CasinoGamblingWeb.com
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