Wynn Resorts Hurting Just Like Other Casino Gambling Companies

Wynn Resorts was supposed to be the one casino gaming company that was above the recession. No matter how far the economy fell, Wynn was going to keep producing profits in their revenue figures. Now, that is no longer the case.

The company reported a fourth quarter loss as revenue declined with the economy. It was over a $200 million turnaround from the same period the year before.

"Starting in October, we experienced a dramatic deceleration in business. The fourth quarter of 2008 was substantially worse than during the prior year as consumers chose to stay at home and significantly reduced their leisure budgets,' said Wynn in a statement.

The company had a profit in the fourth quarter of 2007 of $.57 a share or $65.5 million. The turnaround for the next year was drastic. The net loss for the fourth quarter of 2008 was $159.6, or $1.49 a share.

The stock of Wynn is similar to other casino operators based in the US. Their stock has dropped over sixty percent last year, and if the early indications of 2009 show anything, it is that the worst may not yet be over.

Another problem that is facing casino companies with a major stake in Las Vegas is expansion throughout the country. With more states having casino gambling, people have become less enthused about taking a trip to Nevada.

February 25, 2009
Posted By Terry Goodwin
Staff Editor, CasinoGamblingWeb.com
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