MGM Mirage, Bally’s, Wynn, Harrah’s Lose Out on Betting Sports During Tough Economic Times
By Jagajeet Chiba
February 23, 2009
Las Vegas is hurting during these rough economic times. Hotels on the strip have drastically slashed room rates in an effort to compete.
But the likes of MGM Mirage, Bally's, Wynn, Harrah's and a whole slew of others appear to be losing out in a big way.
The online gambling sector is a multi-billion dollar industry that continues to thrive despite the economic downturn. Sure these Vegas giants want to get in on the action once all the legalities are ironed out.
However, Vegas casino companies can be doing more now to capitalize on the Internet gambling market. And the Las Vegas hotel casinos need to start marketing more effectively. The bleeding continues to get worse.
Just how bad are things with the casinos?
From the Motley Fool earlier this month:
"Seventeen casino operators are at a high risk of default, says Moody's Investors Service. The endangered species list contains mostly small, private companies. And those are just the worst of the bunch. No commercial casino operator followed by Moody's or Fitch Ratings has an investment-grade rating. "
According to Motley Fool, Harrah's Entertainment, which was taken private in early 2008, saw its long-term debt nearly double to $24 billion by Sept. 30, compared to Dec. 31, 2007. In late December 2008, Harrah's won some breathing room by exchanging some existing debt for new debt, pushing back the maturity dates on obligation.
MGM Mirage, Bally’s, Wynn, Harrah’s Lose Out on Betting Sports During Tough Economic Times
Tuesday, February 24, 2009
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