Despite a jump in tourism and gambling revenue in Sin City, some analysts believe that the recent numbers are a freak occurrence. That means hard times could be in store for the gaming exchange traded fund (ETF).
According to CB Richard Ellis’ Global Gaming Group, poor home prices, rising airfares, high unemployment levels and a drop in visitors from the 40s to 50s age group will dampen earnings in most casinos in Las Vegas through 2011, reports Liz Benston for The Las Vegas Sun. So far, over-competition is diluting the revenue stream for all casinos on the Strip. [Will Gaming ETF See a Comeback?]
On the plus side, though:
- High-rollers and tourists from Asia are spending big on baccarat games, which prompted the group to project a 10% to 20% increase in revenue from baccarat tables.
- Additionally, the gaming group estimates a 15.5% increase in convention and meeting demand as more healthier firms are booking meetings and events for their businesses. [Gaming ETF Could Win as States Consider Vices.]
- Gaming stocks were up on Thursday after Las Vegas Sands (NYSE: LVS) reported strong third-quarter profits from overseas operations and other gaming firms gained on the optimistic news, writes Murray Coleman for Barron’s.
For more information on the gaming industry, visit our gaming category.
- Market Vectors Gaming (NYSEArca: BJK)
Max Chen 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.