American Casino Business Suffers

The MGM Grand, Las Vegas.  

Formerly rosy expectations in better economic times lead to high amounts of debt being taken on by major casinos. In times of high unemployment and little savings, there isn’t a lot of disposable income around American households. This of course has led to the downfall of major casinos.

MGM Resorts International has been near the bankruptcy mark for years; now they are $13.6 billion in debt. Pennsylvania and Delaware have added casino properties, threatening the most famous gambling center east of the Mississippi, Atlantic City. Their market was already shrinking, but many hands in the pot have only made things worse. Next month the 47-story behemoth Revel Resort will open, putting further stress on the old casinos already there. In Reno Nevada the Siena Hotel Spa and Casino went bankrupt in 2010 and the Grand Sierra Resort submitted to a hostile takeover in 2009. In Las Vegas, Caesars Entertainment has $22 billion of debt resulting from going private six years ago.

Ohio voters legalized gambling in 2010, and four new casinos will open next year. Massachusetts has approved the opening of three casinos, and New York is being lobbied to open casinos as well. Every state now has some form of gambling except for Utah and Hawaii.

Many of the casinos deal in timeshares, and this declining market along with decreased tourism overall is having a deadly effect on the gambling industry.