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Apr. 16, 2008
Copyright © Las Vegas Review-Journal

Share prices for major casino companies drop

By HOWARD STUTZ
REVIEW-JOURNAL
CASINO SHARE PRICES
  October Latest
MGM $100.50 $49.58
LV Sands $148.76 $69.05
Wynn Resorts $176.13 $98.06

Share prices of the major casino operators tumbled Tuesday, the day after MGM Mirage said it eliminated 440 manager and supervisory level positions at both property and corporate levels.

It was unclear Tuesday if other casino operators were laying off workers as a response to the souring national and local economies.

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    • Gaming revenues statewide and on the Strip have fallen in three of the past four months while room rates are down as much as 19 percent from a year ago.

    "Trends in Las Vegas and across the U.S. have been softer this year, as both gaming and nongaming revenues have been impacted by a difficult economic environment," Deutsche Bank gaming analyst Bill Lerner said in a note to investors following the MGM Mirage cutbacks.

    Most of the job layoffs took place in Las Vegas, where MGM Mirage operates 10 Strip casinos. The company, which also operates casinos in Mississippi and Michigan, employs almost 66,000 workers.

    A Biloxi, Miss., television station reported Tuesday that 100 managers and salaried employees lost their jobs at MGM Mirage's two Mississippi casinos, the Beau Rivage in Biloxi and the Gold Strike Casino in Tunica.

    Shares of MGM Mirage, traded on the New York Stock Exchange, closed at $49.58, down $2.24, or 4.32 percent. MGM Mirage was trading at $100.50 in October.

    Other casino operators also fell in value during trading Tuesday.

    Shares of Las Vegas Sands Corp. fell $4.97 to close at $69.05 on the New York Stock Exchange, off 6.71 percent. In October, Las Vegas Sands hit a 52-week high of $148.76.

    Shares of Wynn Resorts Ltd., traded on the Nasdaq National Market, fell $2.63 to close at $98.06, down 2.61 percent. Wynn reached a high of $176.13 in October.

    Harrah's Entertainment spokesman Gary Thompson said the company completed a staffing reduction at the corporate level six months ago based on the recommendation of an outside consultant. Some 500 positions were eliminated at the time.

    Meanwhile, the company laid off about 100 workers at Bally's Las Vegas in the past three months because of the closing of the hotel's buffet. The company also eliminated some positions at its casinos in Atlantic City.

    "There may have been some other job reductions since then, but nothing in numbers of any substance," Thompson said.

    In February, Station Casinos said it had some layoffs and some work-hour cuts because of the economy, but nothing since then, said company spokeswoman Lori Nelson. Station Casinos is planning the opening of the $675 million Aliante Station by the end of the year, which will employ 1,500 people.

    Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871.



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    I see Far wrote on April 17, 2008 12:21 AM: Nibiru is coming and can already be seen in the southern skies...the end is near...The Mayans had it right all along...2012...think I am nuts? do your own research...Bush is spending like there is not tomorrow because he knows there will be no tomorrow...


    Renee wrote on April 16, 2008 07:44 PM: Back in the early 1980s we could bounce back from anything now we have to much of every thing to many rooms ,casinos,shows just to much to survive a recession


    2zero wrote on April 16, 2008 03:18 PM: Is Las Vegas rescission proof? During past "hard times" fuel was cheap and so was Vegas. Today, air travel is uncomfortable at best and automobile travel is very expensive and by the way we no longer have a train station here. During the historic "hard times"; Vegas was a place to get away from it all, today it is more like "salt in the open wound"!


    Stan wrote on April 16, 2008 09:39 AM: Hey Chicken Little! Look back in history. When times were the toughest, two industries flourished... booze and gambling. LV has an abundance of both. This is just the lull before the storm. All the casinos need to do is drop the minimum on all table games, put in more nickle slots and sit back and count the dough. Don't worry about stock prices unless you're one of the big boys who actually own a ton of stock (like KK, Wynn & Adelman). There's light at the end of the tunnel, just pray it ain't a train coming the other way.


    Rio Rita wrote on April 16, 2008 08:53 AM: Las Vegas is drying up, just like the machines, people can no longer hear the clank of the coins, its ALL PAPER, winners NO Longer scream when they win a few dollars, and most times you lose ALL you money, because they no longer pay....I was a platium card holder, and now I am a platium SAVER!!!! If the Casino's can't see there greed has cause this there stupid!


    ET wrote on April 16, 2008 07:18 AM: Lots of $$$ lost in wealth,whew,Sands man still a Billionaire ,Etc.
    The Casinos may increase business by lowing room and food rates and loosening up the machines.It's no fun losing a $ 20.00 bill w/o winning a single spin,let em win, and they'll be returning in herds.


    David wrote on April 16, 2008 03:22 AM: Station Casinos is planning the opening of the $675 million Aliante Station by the end of the year, which will employ 1,500 people.

    Could be a disaster in the wake of foreclosures in that neck of the woods.