Casino shares tumble after MGM job losses
The share prices of all the big U.S casino operators have fallen following the news that MGM Mirage Inc. will release over 400 middle management positions in the company in an attempt to minimise the effects of the downturn in the U.S economy.
Gaming revenues are down in Las Vegas whilst room rates are down as much as 19 per cent from a year ago.
"Trends in Las Vegas and across the U.S. have been softer this year, as both gaming and non-gaming revenues have been impacted by a difficult economic environment," said Deutsche Bank gaming analyst Bill Lerner in response to the MGM job losses.
Shares in MGM Mirage were down 4.32 per cent to $49.58 a share.
Shares in Las Vegas Sands Corp. fell $4.97 to $69.05, down 6.71 per cent whilst shares in Wynn Resorts Ltd. fell $2.63 to $98.06, down 2.61 per cent.
Harrah’s Entertainment were much more proactive in preparing for a potential downturn in the economy as they released about 100 employees starting 3 months ago.
Editor, Jackpot.co.uk - 2008-04-16 12:41:42