 Newsletter Signup
Stay informed with the
NEW Casino City Times newsletter! |
Gaming News
Economist predicts more Vegas mergers23 April 2001More mergers and acquisitions in the Las Vegas gaming industry are expected as financing for new resort growth becomes more difficult, said Wells Fargo & Co. economist, Sung Won Sohn, at the unveiling of the 2001 edition of the reference publication "Las Vegas Perspective" last week. "Older properties like the MGM Grand have done better on historical returns compared to the newer resorts like the Aladdin. Financing may be getting difficult for new resort growth," he explained. Although the fear of a recession looms, he noted that the growth in Las Vegas room occupancies has continued to outstrip that of room inventories. Las Vegas Investment Advisors, an investment firm specializing in gaming stocks, was less optimistic in its outlook, reporting that room rates, a key indicator of consumer demand, have been declining dramatically since February. Also speaking at the event was Governor Kenny Guinn, who, fearful of the economic downturn, emphasized the necessity to "expand Nevada''s revenue stream, and reduce our dependency on the gaming industry as gaming revenues are declining.’ Comparing Nevada to California, Guinn stressed that the way to succeed was through an educated workforce. |