Moody’s Upgrades US Casino Market to ‘Not Quite So Bad’

Moody’s<span id="more-6315"></span> Upgrades US Casino Market to ‘Not Quite So Bad’

Moody’s Investors Services has some good news for the gaming market that is american. Sort of.

Us casino revenues are up somewhat, but Moody’s warns that operators haven’t any more room to cut costs.

The US land-based casino industry is showing indications of improvement, but only a bit, according to Moody’s, which this week upgraded its assessment of the market from negative to stable.

In May, gambling revenue rose in every one of the 18 states being tracked by Moody’s, except for Connecticut and New Jersey, the company stated, with an typical development, year-on-year, of 4.1 per cent across those states.

Moody’s cited a positive trend of revenue growth, cost-cutting, and reduced market ‘cannibalization,’ whereby organizations poach business from each other, as contributing factors.

The company believes there is room for modest growth, and that revenue will increase between zero and 2 percent each month, year-over-year, for the next 12 to 1 . 5 years, which may result in an increase in profit of three or four percent, excluding taxes and other items.

Breathing Room

The company’s gaming analyst, was far from effusive despite this positive note, Kevin Foley.

‘While not really a performance that is stellar we consider this broader improvement a tangible sign of sector income stability,’ he told the Associated Press. ‘we are not saying they truly are getting better… At least, it’s some breathing room. It’s better than if it went the other method.’

Its, nevertheless, a rosier outlook than this time this past year, whenever gaming revenues, aided by the exception of Nevada, remained flat, despite economic improvement and development in other sectors. In June 2014, Moody’s appraisal was that revenues were weaker than anticipated, and the outlook that is economic Las Vegas seemed bleak and was graded as ‘negative.’

Now, says Moody’s, operators are profiting from years of less expensive structure. The economic depression of 2008 hit the casino industry difficult, and forced it to tighten up budgets. Several casino companies which had begun expensive expansion plans at the period were caught short, as revenue plummeted also it became almost impossible to refinance debt.

Running Out of Room

Caesars Entertainment, formerly Harrahs, was the many casualty that is high-profile. After years of expansion, the company was acquired by Apollo Global Management and TPG Capital in a $30.1 billion leveraged takeover.

Caesars acquired a debt that is industry-high the method, and struggled in the ensuing years, failing to turn a profit until this year, whenever, regardless of the complex bankruptcy procedures of its main running product, it announced that its margins had returned to ‘pre-crisis’ levels

Foley cautioned that casino operators ‘may be running out of space to lower your expenses much further,’ adding that ‘too much cost-cutting could sacrifice quality and service, which operators cannot afford at time if they are battling for market share amid supply increases.’

In addition, he warned that casinos must contend having a absence of development in customer spending, as disposable income amounts remain relatively low.

MGM Vows to Block Connecticut Casino Plan

An musician’s rendering of the MGM Springfield, which includes caused a border war to erupt between Connecticut and Massachusetts. (Image:

MGM declared war on Connecticut this week, vowing that it would fight hawaii’s efforts to create a casino along Interstate 91 on its northern edge with Massachusetts.

The proposed home is positioned near Hartford, CT, and just miles from Springfield, MA, where MGM has just broken ground on an $800 million casino resort project, expected to open in 2018.

Connecticut wants to obtain in there first, with a ‘satellite casino’ that may be erected in much less time than MGM’s ambitious project that is vegas-style. Connecticut lawmakers recently passed a bill permitting the constitutional adjustments needed to achieve this.

Bring it On!

‘We’re not likely to go peacefully,’ declared William Hornbuckle, President of MGM Resorts Overseas, in an interview using the Associated Press this week.

Hornbuckle, who, incidentally, was born and bred in Connecticut, did not care to elaborate on exactly exactly what MGM had planned, suffice to say he and his peers had been ‘contemplating our choices.’

‘Bring it in, MGM,’ stated Connecticut Representative Stephen D. Dargan, blood pumping. ‘We’re in direct competition!

And another plain thing: ‘We’re serious about protecting our share of the market,’ he added. ‘If they think they’re likely to scare us with their tactics, they’re not.’

Thousands of work

Connecticut has sanctioned two casinos on tribal lands in its southeast since the nineties that are early in return for a percentage associated with the profits.

Only the Mohegan tribe, which operates the Mohegan Sun, plus the Mashantucket Pequot tribe, which runs Foxwoods, are permitted to operate casinos.

Both, however, were struck hard by the global economic depression of 2008 and are also each over $1 billion in debt.

MGM has made no secret of its want to attract customers from Connecticut, and estimates that some 40 % of footfall will come from their state.

Connecticut lawmakers are worried about the potential loss of thousands of casino-worker jobs into the state as a consequence of increased competition from Massachusetts; Foxwoods and Mohegan Sun have laid off hundreds of employees to conserve money in recent years.

‘Simply, this will be about siphoning profits from Connecticut to benefit a vegas company while at the same time frame moving tens of thousands of existing jobs from Connecticut to Massachusetts,’ tribal leaders said week that is last. ‘That’s why the tribes, the legislature, plus the governor have committed to developing a solution that protects Connecticut.’

‘Box of Slots’

Jim Murren, CEO of MGM, and, strangely enough, additionally a Connecticut native, was scathing about the project calling it, witheringly, ‘a field of slots.’

‘I do give a damn about Connecticut because i am from there,’ he claimed year that is early last. ‘we just want their money to come here!’

While MGM’s threat to Connecticut’s plans is unspecified, it is possible that the company has some recourse for the challenge that is legal.

Connecticut attorney general George Jepsen has warned that a third party might claim that exclusive gambling rights to the tribes, in areas outside their sovereign lands, violates the Equal Protection Clause of the usa Constitution.

It might be in breach regarding the Commerce Clause because it would grant rights to conduct gambling ‘for the purpose of protecting in-state economic interests from interstate commerce.’

Deadwood Brings Roulette, Craps, and Keno to Historic Gold Rush Town

Deadwood is betting on its rejuvenated gambling industry that now includes roulette and craps to revamp its tourism numbers that have flatlined throughout the final years that are several. (Image:

Deadwood, South Dakota, is less than four square miles in size, however with 24 gambling venues town has more casinos than that on most states.

The historic settlement played an important role within the expansion of the American west, as miners and silver rushers journeyed into the Dakota Black Hills in search of treasure through the late 1800s.

The storied history of Deadwood is a read that is fascinating but its recent history is not much to write about.

The bustling town of this century that is 19th no more, home to less than 1,300 residents in 2015.

Its economy that heavily relies on tourism is struggling to attract visitors, however that could alter thanks to a new resolution put into place July 1st that now permits Deadwood casinos to provide roulette, craps and keno.

Only poker, blackjack, and slots were formerly allowed.

‘It’s going to change the image of Deadwood,’ Mike Rodman, executive director associated with Deadwood Gaming Association stated. ‘Deadwood now is a truly full-fledged gaming destination.’

Boom to Bust, Bust to Boom

The once-lawless mining town did not formally legalize gambling until 1989. That provided a spark in tourism that led to a economic boom.

Tax proceeds from gambling revenues were allotted to the preservation of historic buildings, with the Adams Museum & House, the former home of W.E. Adams being restored in 2000.

When HBO launched ‘Deadwood’ in 2004, a television series that would carry on to get acclaim that is critical run for three years, people flocked to the remote Southern Dakota location for a first-hand trip into the past.

Life was good, until it wasn’t.

The Adams Museum & House went all-in on the growing income, establishing away to create the Homestake Adams analysis and Cultural Center (HARCC), a public housing of Black Hills archival materials from its most legendary events and residents.

The museum sought to raise $3.6 million, using the city guaranteeing $1.5 million paid by the Historic Preservation Fund.

Then in 2006, ‘Deadwood’ was canceled by HBO, and soon after the swarm of fans soon migrated elsewhere. 2 yrs later, the country being a entire suffered an economic collapse, and Deadwood was hit hard and left almost, well, dead.

Today the downtown hotels, bed and breakfasts, cabins, restaurants, and casinos remain devoted to revitalizing Deadwood, but they recognize that is a challenge considering its remoteness.

The closest airport that is commercial an hours drive away in Rapid City, and a regional airport at that.

Gambling on Gambling

Regrettably for Deadwood, it doesn’t have the fortune to be positioned near big metropolises of people or international airports, however it is located just minutes off Interstate 90, the longest highway in the usa that stretches from Boston to Seattle.

Moreover, it offers history from Civil War Calvary commander George Custer to western legend Wild Bill Hickok, frontierswoman Calamity Jane, and Dr. Valentine McGillycuddy, physician to famed war leader Crazy Horse.

The aces and eights two-pair hand famously held by Hickok when he was shot from behind in the head for gamblers, the so-called ‘Dead Man’s Hand’ took place in downtown Deadwood.

It appears only right that Deadwood should offer not just poker and blackjack, but also roulette and craps, as all four were played back the 1800s. The additions are expected to bring $2 million in additional video gaming revenue to the town that is small.

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