AC nosedive accelerating

cjk73 · #1 10-12-2007, 08:54 AM

Three new hotels in the works (incuding the MGM/Mirage) and room expansion at Harrah's, Borgata, and Taj.

I'm guessing these guys feel they have good reasons for the investments.

pocketpared · #2 10-12-2007, 11:41 AM

MGM was supposed to do an AC project with the Mashantucket Pequots from Foxwoods. Foxwoods backed out and opted to do a Poconos project. MGM decided to go it alone. Pinnacle is looking to get out already. They've used the excuse that if AC rezones Bader Field for Wynn they won't build. New projects won't mean more gamblers. It will just take players from the dwindling pool at the other dumps. The enclosed smoking areas haven't even been implemented yet. That and new casinos and slot parlors in nearby states guarantee the decline continues. Hmm...AC..or the Poconos? Where to go? You can't make a silk purse from a sow's ear.

cjk73 · #3 10-12-2007, 08:33 PM

[ QUOTE ]
MGM decided to go it alone.

[/ QUOTE ]

Again, fairly successful company, I'm guessing they know something about the industry...no?

Poshua · #4 10-14-2007, 01:37 PM

[ QUOTE ]
MGM was supposed to do an AC project with the Mashantucket Pequots from Foxwoods. Foxwoods backed out and opted to do a Poconos project. MGM decided to go it alone. Pinnacle is looking to get out already. They've used the excuse that if AC rezones Bader Field for Wynn they won't build. New projects won't mean more gamblers. It will just take players from the dwindling pool at the other dumps. The enclosed smoking areas haven't even been implemented yet. That and new casinos and slot parlors in nearby states guarantee the decline continues. Hmm...AC..or the Poconos? Where to go? You can't make a silk purse from a sow's ear.

[/ QUOTE ]

There are a whole bunch of projects on the books in AC, at least including Revel, CityCenter East, Pinnacle, and Wynn. It's likely that at least one will not get built the near term, because that would be an awful lot of development at once. This is not because it's a dying market; indeed, the upscale properties continue to perform well. Slot revenues are down but table games and hotel room rates continue to get better for operators. AC has a strong future that will involve shifting from a local casino model to a destination casino model.

Proposed casino projects get scuttled all the time in Vegas (the W Hotel, for example). Is that a sign that Vegas is a dying market?

pocketpared · #5 10-14-2007, 10:18 PM

We're talking about AC, not Vegas. The numbers show it's a dying market.

Eponymous · #6 10-14-2007, 10:33 PM

[ QUOTE ]
We're talking about AC, not Vegas. The numbers show it's a dying market.

[/ QUOTE ]

There was bound to be some effect from the addition of all the nearby slots that recently sprung up. To extrapolate that adjustment to say it's a permanent downward trend and the market is dying is missing the big picture. A different customer base is being attracted by upscale properties like the Borgata, and that's why there are so many huge properties being developed.

AngusThermopyle · #7 10-14-2007, 10:37 PM

[ QUOTE ]
We're talking about AC, not Vegas. The numbers show it's a dying market.

[/ QUOTE ]

What is your agenda?

pocketpared · #8 10-14-2007, 11:16 PM

I post facts from the NJ CCC. What's your agenda for jumping to the defense of casinos?

AngusThermopyle · #9 10-14-2007, 11:31 PM

[ QUOTE ]
I post facts from the NJ CCC.

[/ QUOTE ]

And I am sure you will post a link next month to that month's report. And the month after that. And the month after that. And tell us the casinos in AC are losing money. They are dying.

Point?

NickMPK · #10 10-14-2007, 11:56 PM

[ QUOTE ]
I post facts from the NJ CCC. What's your agenda for jumping to the defense of casinos?

[/ QUOTE ]

You are using really charged language by saying AC is "dying". It is still way ahead of where it was 5 years ago. The WSOP Main Event got fewer entries this year than last. Is it dying?

Why should we care if the casinos are making more money this year than last? The Borgata poker room isn't going anywhere.