Craig Eisele on …..

January 31, 2012

Nevada Casino’s carrying record debt and higher ratios than ever

Filed under: Uncategorized — Mr. Craig @ 10:12 pm

UNLV study:

Casino debt at highest level everNevada’s casinos have taken on more debt than ever before, shifting the finances of the state’s largest industry into unprecedented territory, according to an analysis of state gambling data by the University of Nevada, Las Vegas.

The study released by the UNLV Center for Gaming Research found that total liabilities for the state’s casinos have grown 18-fold since 1984 to $51.2 billion during the fiscal year that ended in June 2011. But with $22 billion in casino revenues for that same period, the money they were pulling in was only five times the amount from 1984.

The center’s director, Dave Schwartz, said that since 2008, casinos have owed more in long-term debt than they collectively earn in revenue each year.

“This says that the growth that we saw and the investment that we saw in the middle of the decade was quite different from what we saw in the middle of the ’90s,” Schwartz said.

The years just before the Great Recession were the best — and most optimistic — years for Las Vegas casinos, as developers were eager to build more megaresorts, and casinos seemed to fill hotel rooms and slot machines as quickly as they could build.

The success led to aggressive financing for construction and the pricey privatizations of Caesars Entertainment Corp., then Harrah’s Entertainment, and Station Casinos Inc. The corporate buyouts left the companies with significant debt.

Advertisements

2 Comments »

  1. Dear Craigeisele,
    Neat Post, According to Nevada state law and the laws and ordinances of Clark County and the city of Las Vegas, open carry of guns is not prohibited in any building except government buildings. This would mean, unlike some states, it is legal to carry firearms into bars, casinos, and other places that serve alcohol. (I realize North Las Vegas and Boulder City is different). Am I right, that you can carry in those establishments? I even heard from one enthusiast that those state laws trump any signs that may prohibit firearms–any opinion (KNOWLEDGEABLE ONLY TEENIE BOOPERS AND LIBERALS).
    BTW great blogpost

    Like

    Comment by James earl Jones — January 31, 2012 @ 10:53 pm

  2. […] this link: Nevada Casino's carrying record debt and higher ratios than ever … Sponsered Links Further ReadingFinal Ratio analysisThe ratio may not […]

    Like

    Pingback by Nevada Casino's carrying record debt and higher ratios than ever … | What is High Debt Ratio ? — February 1, 2012 @ 7:49 am


RSS feed for comments on this post. TrackBack URI

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Create a free website or blog at WordPress.com.

%d bloggers like this: