Las Vegas Doom

Las Vegas has been hit especially hard by the downturn, with visitation levels dropping and spending by those who do come sharply lower. And, amid a glut of new rooms, that has pressured rates and dragged down margins at all the major casino operators.


This might seem that doom is imminent for Las Vegas. But I feel that it's the other way round. Look at Singapore for instance. We had the audacity to open two Integrated Resorts and that we implemented a $100 entrance fee for locals. This just goes to show that we are relying alot on foreigners and most of the spendings in the casino will be mainly made by foreigners which I predict to be at least 80% of the total revenue made by the company.

Nonetheless, this also imply that the business for casinos is far from over. I believe that it will be a V-shape recovery because gambling is an addicition.


Thus, the demand is inelastic in nature. People do not care about the fees or whatsoever so long as they can continue to gamble. The resumption will begin very soon, perhaps even from the next quarter onwards.


The world might be still in a fragile state but a lot of citizens are recovering faster than you can possibly imagine and most of the firms are already picking up speed in their operations.


Soon, spendings will be back and people will go back to gambling and having fun. Of course, there are people who wants to make a killing in this economy because their pay is simply too low to sustain their profligate living style.

When it comes to gambling, it's all in the mind, it's about psychology. If you see people making merry inside the casinos with all the incandescent lightnings and colourful people and decorations. You will definitely be sucked in and enticed by the intense amount of joy people are having inside.


Even if you lose once, you will still go back in again the next time. When you based your decisions on your visceral feelings, your judgement will be skewed.


Now that people are eschewing from the casinos, naturally the world has the impression that it is best to stay away from gambling as it is bad and stuff.


However, when the time comes again, whereby the business start to pick up. The recovery will be faster than you can possibly imagine. Trust me, people will flock into the casinos in an exponential manner.


The key is then to know when will people revisit the casino once again? This will be up to the management of the casinos.


1. Create a huge hype surrounding the casinos with huge decorations and events.


2. Make new cheap offers to entice people to stay in the hotel, this way people will drop by their casinos when they are lazy to go shopping around.


In conclusion, gambling is part and parcel of life. You can easily draw people in if you have the right tools.


Credits -worldgamblerblog, -thetravelpeach