Vegas is going Bankrupt #2 - Keep watching….

WHERE IS THE MONEY FLOWING?  Maybe not Nevada anymore…

“The gambling slowdown that began early this year is taking a serious toll on Las Vegas, with banks, investors and private-equity funds growing as tightfisted as the consumers who are gambling less in the slumping economy.

Once believed to be recession-proof, casinos are proving to be highly vulnerable to the economic downturn, which is striking the industry at a bad time. Las Vegas is entering its lethargic summer season, and a boom-time frenzy of grand expansion plans and private-equity buyouts has left casinos laden with debt.

The gambling industry has survived economic famine before. But the current consumer-driven downturn, coupled with a recent industry shift away from gambling and toward luxury amenities, high-priced entertainment and dining, has created a dangerous situation for Las Vegas.

The problems are weighing heavily on gambling companies that cater to the local Las Vegas population with low-glitz, high-profit casinos built away from the tourist zone known as the Las Vegas Strip. Those companies thrived on the boom in southern Nevada’s population, as families flocked to the area for jobs in the casino industry. But now those customers are holding back, pinched by a housing crunch and rising unemployment.”

SOURCE - WALL STREET JOURNAL

Macau On Target for 30 Million Visitors in 2008

ARTICLE

Written on May 1, 2008 by MacauDailyBlog.com

“Macau received 7.5 million visitors in the first quarter of 2008, which was a rise of 17.9 percent against the same period of 2007.

The number of visitors from mainland China was 4.38 million, which was a rise of 22.6 percent, while the number of visitors from Hong Kong and Southeast Asia rose 3.3 and 63.3 percent, respectively.

In March, the total number of visitors to Macau was 2.7 million, which was a rise of 25.6 percent year on year.

Visitors arriving in Macau were mainly from mainland China (57.7 percent of the total), followed by those from Hong Kong (27.4 percent).

In 2007 Macau had 27 million visitors, as compared with 22 million in 2006.”

85% of visitors were Chinese citizens!!! THE GROWTH - From the rest of the World and more Chinese as they get more disposable RMB in their pockets…

Adelson recoups his entire $265m investment in the Sands Macau one year after opening.

Las Vegas Sands Macau Gaming License May Be in Jeopardy

Written on October 5, 2007 by Macau

ARTICLE

“Adelson was the first American to open a gaming facility in China, recouping his entire $265 million investment in the Sands Macau one year after it opened in 2004.”

Macau Wins 2006 “Best Economic Potential” Award

A bit dated, BUT this is before the Casinos revenue came in these last 2 years and surpassed Vegas.

Looks like a STRONG PANEL!  (Below)

ARTICLE

“The judge panel of the competition was made up of four experts in trade, law, investment and consulting from Singapore, Hong Kong and Guangzhou. The panel examined more than 40 applications from individual Asian cities and regions in their economic database and foreign investment environment. Macau and Seoul were both graded the “City with Best Economic Potential” in Asian cities.”

 

Olympic torch passes through MACAU…MACAU surpasses Vegas as world top gambling center.

Olympic torch begins relay in Chinese casino city of Macau

By MIN LEE 

Associated Press Writer

Article

“The torch passed new Las Vegas-style casinos that have helped this Chinese territory surpass the Las Vegas Strip as the world’s top gambling center.

After returning to Chinese rule, the city broke up a monopoly on the gambling business. Casino tycoons from Las Vegas and other places were allowed into the market, creating a big gaming boom.

The magnates include billionaires Steve Wynn of Wynn Resorts Ltd. and Sheldon Adelson of Las Vegas Sands Corp., who opened the $2.4 billion Venetian mega-resort complete with Italian-style gondolas floating down indoor canals.

In 2006, Macau overtook the Las Vegas Strip as the world’s epicenter of gambling. Its casinos rang up $6.95 billion in gambling revenue, while the Strip made $6.69 billion, regulators in the cities said.

Last year, Macau’s casinos raked in more than $10.3 billion in gaming revenue, an increase of 46 percent over the previous year, the government said.”

Is VEGAS going BANKRUPT as US Economy slows…?

WALL ST. JOURNAL ARTICLE

Tropicana Makes Bankruptcy Filing As Casino Glitz Takes Economic Hits

By Jeffrey McCracken and Tamara Audi

“The problems at Tropicana, which has 11,000 employees and about $1 billion in annual sales, come as the casino industry as a whole is struggling. They also underscore weak performance in Las Vegas, which has seen major casino projects canceled or delayed and gambling revenue decline as the economy stumbles.”