Las Vegas Housing, Casino Revenues Have Dropped Like a Pair of Loaded Dice

Not long ago we heard gossip that and then anecdotal evidence that visitors and gamblers are not coming to Vegas like they used to.

People don't have gambling bucks and money to loose when all aspects of "the wealth effect (remember that one?)" have dried up. And folks from Los Angeles are finding the drive too expensive with $5-a-gallon gasoline.

Some have wondered how this has impacted real estate in the Las Vegas area, which was one of the fastest growing metropolitan areas in the US during the early years of this decade.

Apparently others are coming to that view as well, now that cash is tight… as casino revenue has dropped like a pair of loaded dice and the Las Vegas real estate market is being roughed up like a card counter taken into the back alley by casino security.

The chart below tells it all, and it isn't pretty, and it isn't over yet.

click to enlarge

And the Las Vegas housing market is not alone in being thrown into a dumpster: this week. The latest tally shows that foreclosures in the U.S. have doubled over the same quarter last year. There are now almost 750,000 homes nationwide in some phase of the foreclosure process.

This is just one more big clue that the financial and housing meltdowns are far from over. Prepare for possible shock waves ahead and the continuation of the "penalty phase" of the age of easy money.

P.S. This doesn't bode well for the stocks like MGM Mirage (NYSE:MGM) and Boyd Gaming (NYSE:BYD) which have virtually collapsed over the past 12 months. Take a look below at the 1-year chart for MGM and you'll see what I mean.

Disclosure: None

Comments

[CrossProfit_:]

"money to loose"

Lose NOT loose!

2008 Aug 04 08:28 AM

[capital pains:]

Vegas is a disaster...Covention business down almost 20%..Non-gaming revenues down substantially,,Weekend... from Calif., not driving over liked they used to..(Californians used to comprise 30% of the caisnos business. Macau incredibly competitive and controlled by the junketeers, a euphamism for extortionists.
No reason whatsoever to but casino stocks in the economic environment we will continue to be in.

2008 Aug 04 08:44 AM

[American Ga...:]

Agreed, This is an awesome time to buy! I like MGM and BYD agressively right now.

2008 Aug 04 02:18 PM

[Still Renting:]

Heh, heh. And it will be an even BETTER time to buy in a few months. And even better in a year, and even better...

2008 Aug 04 04:23 PM

[poker911:]

I was just in Vegas. While things are down, by no means are the dead. Casino's on the strip we're very busy. Down in Vegas is up compared to many other places. I like Wynn, who did great in Macau on last report. It carried it's down Vegas business. I also like MGM, and expect it to be bought out THIS year.

2008 Aug 04 04:39 PM

[002:]

What a trash artical, just filling space? I can forsee a merger between BYD and ASCA, MGM and ASCA, or LVS and ASCA. Don't forget about the 26 acers RIV holds with only a 12.5 mil float. For MGM to be purchased Kirk has to be onside as he contols 50%+ of the outstanding shares

2008 Aug 04 05:16 PM

[kurt walter:]

I will wait until I see insiders buying gaming stocks.

2008 Aug 07 01:12 PM

[rana:]

must agree with "STILL RENTING"
these markets are in a downtrend that is supported by the fundamentals. prices will be better in the near future.

2008 Aug 15 07:10 AM

[capital pains:]

MGM is the most undervalued gaming stock in the entire sector.
It will only take a paltry $ 6.2 billion to take the company private @ $50 per share ..This will happen..When ? We don't know ..But, with deep pocketed Dubai. Kirk at a "young 91" It will happen ......It makes sense and the deal is so very doable .. ...It will happen ....

2008 Aug 26 08:41 PM

[directcommu...:]

been to vegas lately? a buffet that used to cost $5 - $8 to eat now costs $18 - $20. Hotel rooms $70+ which you used to get around $35 - $55 a night. I think Vegas has priced itself out of the market. I wasn't clear on how a company raises rates as there is more competition. You would think the law of supply and demand would kick in. I myself haven't been back in a while because of the high prices.

2008 Oct 15 07:29 PM