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Inside Gaming: Oil Price Drop Could Grease Las Vegas Tourism25 May 2004Market analysts on Friday predicted a major correction in crude oil prices. That'll be a boon for leisure travel, by air and car. Crude prices have been closing above $40 a barrel, but analysts said they've been pushed up by hedging. They're predicting a return to a sustainable price of less than $35, which should knock aviation fuel and gasoline pump prices down substantially, and make vacations in Las Vegas even more affordable. *** Amid the hoopla over Sheldon Adelson and the opening of his first casino complex in Macau, a delegation of Singapore officials visited Las Vegas last week to discuss casino development prospects with major Las Vegas operators. Word is the Singapore Legislature is on the brink of legalizing gambling, paving the way for developments on a now uninhabited island. They'd like to tie it to a resort development and challenge Adelson for convention business -- even though he's reported to be interested himself. *** And what was all the hoopla about? A Macau news site reported that Sands Macau did $1.25 million in its first nine hours of operation, or $139,000 per hour. No data were provided breaking these results down into win per table. Stanley Ho's 12 casinos reportedly did $8.75 million for the full 24 hours that day, "the lowest of any day so far this month." By comparison, the Borgata did $143 million in casino revenues in 2004's first quarter, or $1.6 million per day, or $65,500 per hour. *** MGM Mirage and Mandalay Resort Group, the Las Vegas operators with temporary casinos in Michigan, are stuck with the likelihood of higher taxes. The Michigan Legislature last week was on the brink of doubling the 18 percent tax rate on casinos. Casino spokesmen say a doubling of taxes could see them canceling plans for permanent casinos. Another senior executive stormed that the legislators just don't understand business. "These states want to change the rules of the game after a company has already committed itself to investing hundreds of millions." *** Executives at the Borgata in Atlantic City want a piece of the poker boom. Borgata boss Bob Boughner says the company is planning a 100-table card room. "It will be a category killer in this market," he vows. New restaurants and bars are also part of the planning as high weekend demand has been "spilling over" into the middle of the week. "These are not defensive measures," Boughner emphasizes. "Many companies plan improvements with an eye to keeping up with competition . . . keeping up with the Joneses. But in Atlantic City, we are the Joneses." The Inside Gaming column is compiled by Gaming Wire Editor Rod Smith. You can contact him by phone at (702) 477-3893, fax (702) 387-5243 or e-mail at rsmith@reviewjournal.com. Copyright GamingWire. All rights reserved. |