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

Moody’s<span id="more-5193"></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 slightly, 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.

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 trend that is positive of growth, cost-cutting, and reduced market ‘cannibalization,’ whereby companies poach business from one another, as contributing factors.

The firm 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 1 . 5 years, that could result within an increase in revenue of 3 to 4 percent, excluding taxes and other items.

Breathing Room

Despite this good note, Kevin Foley, the organization’s video gaming analyst, was far from effusive.

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

It is, nevertheless, a rosier outlook than this time around this past year, whenever gaming revenues, with all the exception of Nevada, remained 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 economic outlook beyond Las Vegas seemed bleak and was graded as ‘negative.’

Now, says Moody’s, operators are taking advantage of years of cheaper structure. The downturn that is economic of hit the casino industry hard, and forced it to tighten budgets. Several casino organizations that had begun expansion that is expensive at the period were caught quick, as revenue plummeted also it became almost impossible to refinance debt.

Running Out of Room

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

Caesars acquired an industry-high debt in the procedure, and struggled within the ensuing years, failing to turn a profit until this year, when, regardless of the complex bankruptcy proceedings of its main running device, it announced that its margins had returned to ‘pre-crisis’ levels

Foley cautioned that casino operators ‘may be operating out of space to cut costs much further,’ adding that ‘too much cost-cutting could lose quality and service, which operators cannot afford at time once they are battling for market share amid supply increases.’

In addition, he warned that casinos must contend by having a lack of development in consumer spending, as disposable income amounts remain reasonably low.

MGM Vows to Block Connecticut Casino Plan

An artist’s rendering of the MGM Springfield, which has triggered a border war to erupt between Connecticut and Massachusetts. (Image:

MGM declared war on Connecticut this week, vowing that it would fight the state’s efforts to build a casino along Interstate 91 on its border that is northern with.

The proposed home will 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 may be erected in much less time than MGM’s committed Vegas-style task. Connecticut lawmakers recently passed a bill permitting the constitutional adjustments needed to achieve this.

Take it On!

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

Hornbuckle, whom, incidentally, was bred and born in Connecticut, didn’t care to elaborate on exactly just what MGM decided, suffice to state that he and his colleagues had been ‘contemplating our choices.’

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

And another plain thing: ‘We’re serious about protecting our market share,’ 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 earnings.

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

Both, however, had been hit hard by the global downturn that is economic of and they are each over $1 billion in debt.

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

Connecticut lawmakers are involved about the prospective 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 workers to lower your expenses in recent years.

‘Just, this is certainly about siphoning profits from Connecticut to gain a nevada company while at the same time moving tens of thousands of existing jobs from Connecticut to Massachusetts,’ tribal leaders stated last week. ‘That’s why the tribes, the legislature, therefore the governor have committed to developing a remedy 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 box of slots.’

‘we do give a damn about Connecticut because I’m from here,’ 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 will be possible that the company has some recourse for the legal challenge.

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

It could additionally be in breach of this Commerce Clause because it would grant rights to conduct gambling ‘for the purpose of protecting in-state interests that are economic 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 years that are several. (Image:

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

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

The storied history of Deadwood is a fascinating browse, but its present history is not much to write about.

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

Its economy that heavily relies on tourism is struggling to attract site visitors, however that may change thanks to a resolution that is new into place July 1st that now permits Deadwood gambling enterprises to offer roulette, craps and keno.

Only poker, blackjack, and slots had been previously allowed.

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

Boom to Bust, Bust to Boom

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

Tax arises from gambling revenues were allotted towards the conservation 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 would carry on to receive acclaim that is critical run for three years, viewers flocked to the remote South 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 income that is growing down generate the Homestake Adams analysis and Cultural Center (HARCC), a public housing of Ebony Hills archival materials from the most legendary events and citizens.

The museum sought to raise $3.6 million, utilizing 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 world being a whole suffered an economic collapse, and Deadwood had been 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 realize that is really a challenge considering its remoteness.

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

Gambling on Gambling

Unfortuitously for Deadwood, it does not have the fortune of being positioned near big metropolises of individuals or worldwide airports, however it is located just minutes down Interstate 90, the highway that is longest in America that stretches from Boston to Seattle.

More to the point, 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.

For gamblers, the alleged ‘Dead Man’s Hand’ took place in downtown Deadwood, the aces and eights two-pair hand famously held by Hickok as he had been shot from behind in the mind.

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

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