Gambling, smoking, even premium television could suffer in this downturn
The following excerpt was posted today by MSNBC:
Even — or especially — when times are tough, the common assumption has been that people will continue to gamble for relief and the hope of striking it rich. But Keith Schwer, director of the Center for Business and Economic Research at the University of Nevada, Las Vegas, notes that that type of thinking was based on the more shallow recessions such as the ones in 1991 and 2001.
With the economy appearing to be in deeper despair, gaming companies and the Nevada economy as a whole is already grappling with hard times.
MGM Mirage reported an 8 percent dip in casino revenue in the third quarter ended Sept. 30, and the company halted development of a new property in Atlanta City, N.J., citing the weak economy and tight credit conditions. Harrah’s Entertainment swung to a loss in the same period, and also blamed its woes on economic upheaval.
For Las Vegas specifically, Schwer said part of the problem is that gaming is now much more widespread in the United States, meaning that people can gamble locally without the expense of a trip to Vegas. Many gaming companies also were in the midst of expansion when the economy started to turn, meaning stiffer competition.
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