As consumers continue to penny pinch and feel the wrath of the global recession, areas that depend on discretionary income, such as Las Vegas are hurting even as the related exchange traded fund (ETF) does well.
The state of Nevada recently stated that its gaming revenues have fallen to 2004 levels and gaming revenues on the Las Vegas strip fell 14.8% in June. It wasn’t all gloom in Sin City, as for the second month in a row, high-end play increased despite the absence of special events, states Howard Stutz of The Las Vegas Review Journal.
Gaming is also picking up overseas. Many major players are looking at Macau, including Wynn (WYNN) and Las Vegas Sands (LVS), which have casinos there. Macau accounts for 61% of Wynn’s adjusted income and 69% of Las Vegas Sands’, reports Janet Morrissey for CNN Money. Macau generated $14 billion in revenue in 2008 – more than double what Las Vegas did.
It seems that Nevada isn’t the only state suffering from a decline in gambling, as eight out of the 12 states that allow commercial gambling saw declines in gambling revenues. In addition to this, it seems that lottery revenues are shrinking as well. Fourteen out of 20 states that have lotteries witnessed revenue declines, states Conor Dougherty for The Wall Street Journal.
- Market Vectors Gaming (BJK): up 32.8% year-to-date; Las Vegas Sands is 4.7%; Wynn is 4%
For more stories on gambling and gaming, visit our gambling category.
Kevin Grewal contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.