Casinos not proving recession proof

Casinos are not proving recession proof which they once were perceived to be.  Casinos shares have dropped 16% on the Las Vegas strip as people tighten their belts.  Room rates are being reduced and construction projects are having to be reconsidered.  Before it was easy to build casinos and investors only need to put up a quarter of the price for a multi million dollar line of credit now they have to put up half which is a huge difference.  The whole recession is down to over spending, and banks promoting overspending, eventually a down turn will happen and it has.  Casino developers were going aggressively forward and now they are going to have to suffer for awhile.

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This entry was posted on Thursday, July 24th, 2008 at 3:50 pm and is filed under casinos.

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