The state of Nevada is not used to this kind of failure. Even with the economy sagging, Nevada casinos are supposed to persevere and come out in the positive with their revenue.
That has not been the case this year. For the first time in a long time, Nevada casinos are feeling the effects of a struggling economy just like other businesses around the country.
The figures for June have been released and Nevada casinos once again saw their revenue numbers decrease over the previous year. They closed the fiscal year for 2008 down 1.9 percent from the previous year. It still translated to a win of $12.5 billion.
While most of Nevada’s casinos struggled it was easy for some to pinpoint why there has been a drop in revenue. “The soft economy definitely had an impact, along with record fuel prices,” said Frank Streshley, a Gaming Control Board analyst.
The gas prices are having a major impact on Nevada casinos. The state does much of their business from tourists who are visiting the state. With fuel prices high, airfares have gone through the roof. That has left consumers without extra money to gamble away in casinos.
Many people are also losing their jobs in the tight economy. That has caused less vacations for people who were used to going to Las Vegas once of twice a year.
Missouri One Of The Few States With Casinos Beating The Economy
Around the country almost daily there are reports becoming public of how the economy is hurting the casino industry. State after state is reporting revenue decrease4s over previous years.
That is not the case, however, in Missouri. They are one of the few states who have their casinos still prospering in the face of a miserable economic situation.
Casino gambling revenue rose seven percent in July over the previous year. In July of 2007, gambling revenue equalled $136.9 million. This year in July, that figure jumped to $146.9 million.
It is amazing that the casinos in the state are doing so well when you consider that Missouri has an extremely high unemployment rate. Companies are continuing to downsize, leaving many people without jobs and money.
“Casinos were considered some time ago to be recession-proof. They’re not. But the casinos themselves are pretty strong,” said Gene McNary, Executive Director of the Missouri Gaming Commission.
He did give a reason that casinos in the state are continuing to see rising revenue. The casinos are frequented most in the state by senior citizens, who are on a fixed income. Therefore, the economy is not hurting them as much as it is the younger generation.