Las Vegas Casinos Versus The Online Casinos Now And The Future
Gambling is defined as “to take a chance on winning” so it would seem that the players and also the operators are tightly bound together when it comes to the gambling industry. It seems strange to think of the very big companies such as Las Vegas Sands (NYSE:LVS) and MGM (NYSE:MGM) as being gamblers themselves. That the outcome of those long hours sitting in the board room may very well conclude with a toss of a coin.
I think it would be foolhardy to believe that is the case completely. As with any experienced risk taker the key is to turn the odds in your favor before you toss the coin and short of having a two headed coin all that can be done is to evaluate the current situation and predict online casino games for real money for free the future, yes predict the future, glad we have that cleared up.
This is the fundamental key to being successful in business, yes you need to be able to accommodate the current market needs but that is only surviving. To be successful you have to be able to predict where your industry will be in 12 months, 5 years and 10 years.
Las Vegas has an obvious advantage straight away over other industries, in 10 years time we can all be sure that people will still want to gamble. If you make a certain household product you simply cannot be sure that it will still be needed in 10 years.
Before we predict the future lets have a recap as to where the industry is now. We have to take the industry as a whole and put together both the big Las Vegas casinos and the online casinos. This is not a popular way of looking at the gambling industry particularly in those Las Vegas boardrooms but we can only hope those boards are doing just the same for their own sake.
what about when the honeymoon ends?
The world economy hit the skids in a big big way of that we can all agree but every single industry has been affected in a different way. The gambling industry has not escaped and while the number on the floor might well be down it is the expansion and development plans that were in effect before the crisis struck that have hurt the most.
The Citycenter development in Las Vegas is the largest private development currently underway in the United States and very nearly collapsed, happily it is back on track and scheduled for opening in stages soon but what happens when the doors open. Yes the novelty factor will draw the crowds but what about when the honeymoon ends?.
All the recent numbers to come out of both Las Vegas and Macau point to one thing, less gambling. The properties are surviving but this is based on vacation spending such as the shows, hotel rooms and restaurants being up. A closer look at the number shows that even Steve Wynn (NASDAQ:WYNN) who showed a small revenue increase suffered the same fate and had a drop in gaming revenue.