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

Moody’s<span id="more-6182"></span> Upgrades US Casino Marketplace 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 don’t have any more room to cut costs.

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

The firm said, with an average growth, year-on-year, of 4.1 percent across those states in May, gambling revenue rose in all of the 18 states that are tracked by Moody’s, except for Connecticut and New Jersey.

Moody’s cited a positive trend of revenue growth, cost-cutting, and reduced market ‚cannibalization,‘ whereby businesses poach business from the other person, 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 following 12 to eighteen months, which may result within an increase in revenue of three to 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 a stellar performance, we give consideration to this broader improvement a tangible sign of sector revenue stability,‘ he told the Associated Press. ‚we are not saying they’re getting better… At least, it’s some respiration space. It’s better than if it went the other means.‘

It really is, nevertheless, a rosier outlook than this time around year that is last when gaming revenues, with all the exception of Nevada, stayed flat, despite economic improvement and growth in other sectors. In June 2014, Moody’s appraisal was that revenues had been 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 started expensive expansion plans at the period were caught brief, as income plummeted and it became nearly 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 process, and struggled within the ensuing years, failing to turn a profit until this year, whenever, inspite of the complex bankruptcy proceedings of its main operating device, it announced that its margins had returned to ‚pre-crisis‘ levels

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

In addition, he warned that casinos must contend having a absence of growth in consumer spending, as disposable income levels remain fairly low.

MGM Vows to Block Connecticut Casino Plan

An musician’s rendering of the MGM Springfield, that has 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 build a casino along Interstate 91 on its northern edge with Massachusetts.

The proposed property would be 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 start in 2018.

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

Bring it On!

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

Hornbuckle, who, incidentally, was born and bred in Connecticut, didn’t care to elaborate on precisely just what MGM had planned, suffice to express that he and his colleagues were ‚contemplating our options.‘

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

And another thing: ‚We’re intent on 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 Jobs

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

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

Both, however, had been struck hard by the global economic downturn of 2008 and are each over $1 billion in financial obligation.

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

Connecticut lawmakers are involved about the potential loss in thousands of casino-worker jobs in the state being a results of increased competition from Massachusetts; Foxwoods and Mohegan Sun have laid off hundreds of workers to conserve money in recent years.

‚Merely, that is about siphoning profits from Connecticut to benefit A las vegas company while at the same time frame moving tens of thousands of existing jobs from Connecticut to Massachusetts,‘ tribal leaders stated week that is last. ‚That’s why the tribes, the legislature, plus the governor have actually committed to developing a remedy that protects Connecticut.‘

‚Box of Slots‘

Jim Murren, CEO of MGM, and, strangely sufficient, additionally a Connecticut native, has been scathing about the project calling it, witheringly, ‚a field of slots.‘

‚I do give a damn about Connecticut because i am from here,‘ he claimed early last year. ‚I just want their cash to come here!‘

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

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

It might additionally be in breach regarding the Commerce Clause because it would grant rights to conduct gambling ‚for the goal 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 on the last a long period. (Image:

Deadwood, Southern Dakota, is less than four square miles in size, but with 24 gambling venues town has more casinos than that of most states.

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

The storied history of Deadwood is a fascinating read, but its present history isn’t much to write about.

The bustling town of the nineteenth century is no more, home to less than 1,300 residents in 2015.

Its economy that heavily relies on tourism is struggling to attract site visitors, however that could change thanks to a resolution that is new into place July 1st that now permits Deadwood gambling enterprises 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 for the Deadwood Gaming Association stated. ‚Deadwood now is a really full-fledged gaming location.‘

Boom to Bust, Bust to Boom

The once-lawless mining city didn’t officially legalize gambling until 1989. That provided a spark in tourism that resulted in a boom that is economic.

Tax arises from gambling revenues were allotted towards the preservation of historic buildings, with the Adams Museum & House, the home that is former of Adams being restored in 2000.

When HBO launched ‚Deadwood‘ in 2004, a television series that will continue to receive acclaim that is critical run for three years, watchers 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 their income that is growing away to generate the Homestake Adams Research and Cultural Center (HARCC), a public housing of Ebony Hills archival materials from its most legendary events and residents.

The museum sought to raise $3.6 million, with the populous town 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. Couple of years later, the nation as being a whole suffered a collapse that is economic and Deadwood ended up being hit hard and left nearly, well, dead.

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

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

Gambling on Gambling

Unfortunately for Deadwood, it generally does not have the fortune of being found near large metropolises of people or international airports, but it is located just minutes down Interstate 90, the highway that is longest in the us that extends from Boston to Seattle.

More to the point, it offers history from Civil War Calvary commander George Custer to legend that is western 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 only poker and blackjack, but also roulette and craps, as all four were played back the 1800s. The improvements are expected to bring $2 million in additional gaming revenue to the small town.

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