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Casino Companies Refocus on Vegas

LAS VEGAS – As reported by Reuters: "After more than a decade of expansion throughout the United States, big casino companies are no longer leaving Las Vegas.

"Despite rising competition, the desert gambling city is the greenest pasture for casino companies burned by tax hikes, limited opportunities and changing laws outside Nevada.

"MGM Mirage's (NYSE:MGG) decision this month to build the world's largest casino operator by buying cross-town rival Mandalay Resort Group (NYSE:MBG) for $4.8 billion instead of putting its money into markets outside of Nevada is the latest sign that casinos prefer Nevada.

"…'The state of Nevada sees gaming as core to the economy. It doesn't see it as a source of funds,' Banc of America analyst J. Cogan said.

"…Frank Fahrenkopf, president of the American Gaming Association, an industry group, said major operators were sticking to proven markets given the uncertain tax environments.

"…By contrast, the Las Vegas Strip has a flock of construction cranes for new developments and expansion by Wynn Resorts Ltd.(NasdaqNM:WYNN); MGM Mirage's Bellagio; Mandalay Resort Group's Mandalay Bay; Caesars Entertainment Inc.'s(NYSE:CZR) flagship Caesars Palace; and Las Vegas Sands' Venetian resort. Harrah's Entertainment Inc.,(NYSE:HET) is also mulling a new Strip property…"

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