The landscape of the Las Vegas casino resort market is changing. The recession that has covered all aspects of the economy in the United States has had major affects in the casino resort industry, especially in Las Vegas, and especially for the locals market. The big names like Wynn, Las Vegas Sands, and MGM Resorts International will always have a draw and with their international interests and the eventual economic upswing, they will be able to survive. However, the smaller casino and casino resorts, which dominate the locals market, don’t have such a optimistic fate. Some of them will be okay as they are not big enough to have lasting affects from the recession. However, names like Station Casinos and Herbst Gaming have not been so lucky.
Both of the above mentioned casino companies have filed for Chapter 11 Bankruptcy protection. Station Casinos has been in and out of the courts while they decide on how best to restructure and save their business. In the upcoming months many of their well known properties will be auctioned by the court. There is a chance that Station Casinos founding family, the Fertittas, will be able to hang on to some of the casino properties under the new name Fertitta Gaming.
What should be interesting to watch in what happens when the American economy turns around and the smaller casino and casino resort companies are able to rebound and take advantage of any restructuring. Some experts believe that these companies will be able to take reasonable business risks because they will be under less debt. Some companies may be able to acquire properties that have not fared so well. Boyd Gaming Corporation and Silver State Financial Advisers are both looking to take part in snatching up some of the less fortunate properties. In any case, the future of the locals Las Vegas scene could see some big events in the next year or so that could reshape the way the business is run.
