Casinos Suffer Win Losses for the 1st Quarter of 2008
On May 11th, 2008, the usual rule is that gaming activities do well even turbulent economic times but that appears to be untrue for casino facilities in Atlantic City for the 1st part of 2008. From the trouble Tropicana Casino to the profit slide of MGM Mirage, there is little to celebrate in the gambling sector. Tropicana's faith was affected by the turbulent U.S. economy. Aside from that, back in January 2007, the casino organization paid around $2.1 billion to edge out gaming competitor Aztar.
Tropicana spend needlessly even when the economy is in trouble and the credit markets are having a lot of problems. Last December 2007, the New Jersey Casino Control Commission has decided not to renew the gaming license of the casino property of Tropicana in Atlantic City because of Tropicana's poor compliance track record.
With the tight finances and unable to acquire an additional source of income, Tropicana Entertainment has decided to file for bankruptcy and protection from their creditors under the Chapter 11. The chance of MGM Mirage to achieve a good result for the 1st quarter of the year weakened when the gaming company dismissed four hundred managers in April as part of their $75 million cost cutting program.
MGM spokesperson Alan Feldman commented that compared with Tropicana, their troubles are directly from the sluggish economy. Other gambling companies also posted disappointing results for the 1st quarter of the year. Trump Entertainment grow in the 1st part of the year. The Ameristar Casinos, which posted a profit gain for the first part of 2007, experience a $60.9 million lost for the 1st quarter of this year.
Wynn Resorts saw their revenues slide down by twenty percent. Las Vegas Sands Corporation lost around $11.8 million on the first quarter, after earning $90.9 million on the same period last year. Boyd Gaming lost around $32.6 million for the first part of the year, compared with their $217.9 million profit last year. MGM Mirage Chairman and Chief Executive Officer Terry Lanni that despite their disappointing performance, they are hoping to improve their performance for the 2nd part of the year.
05/21/2008 02:13 PM
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