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Gamblers not expected to double down in economic downturn, experts say

"It's conventional wisdom characteristic of a city and an industry far more accustomed to boom than bust, but it's just not true, experts say. Gamblers, whether motivated by compulsion or hope, don't necessarily double down when the economy spirals and belts tighten.

"...MGM Mirage chief financial officer Dan D'Arrigo said his company sees no difference between the way consumers manage their gambling dollars and the entertainment and lodging spending that has grown to make up the majority of casino companies' revenue.

"...With the housing market tanking and gasoline and food prices rising, operators are seeing the effects of that bucket being emptier than it used to be. Still, gaming companies are going ahead with resorts that will add thousands of new rooms in Las Vegas.

"...A survey of 19 states with casino or race track gambling found about half saw gross gambling revenue drop in December 2007 from the year before. In January 2008, the portion grew to 12 of the 19 states, including Nevada. The state saw gambling revenue fall nearly five per cent from a year ago to $1.06 billion, although analysts note it's too soon to discern a clear downward pattern.

"...Compared with other top U.S. tourist destinations, major gambling hubs - Las Vegas and Atlantic City - are still affordable to the bargain traveller..."

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