Home / Poker News August 2010 / Summer’s bad news for online poker and gambling
Summer’s bad news for online poker and gambling
Posted by: James Carter. - Sat, 2010-08-07 11:41
By now, those with anything to do with the online poker and online gambling industries as well as with their live counterparts, have probably gotten used to the litany of bad news that Summer seems to bring about every year. We know, we know. When the heat’s on and the sun’s shining,
online poker players and gamblers are much more tempted to leave their dark caves of decadence behind for some well earned r&r by the pool. That however doesn’t explain why live gambling interests like Harrah’s in Vegas and MGM lose revenue too…
Harrah’s Entertainment Inc. has apparently suffered a drop of revenue from $2.271 billion to $2.22 billion. We really do feel for those guys (not), but the fact that he losses have probably come from lower hotel room rates still manages to get us excited. Decreased spending by Las Vegas visitors (most of them on a tighter than usual budget due to the ongoing economic woes) has apparently also been a factor in the equation.
How does Harrah’s intend to tackle the issue? By looking to get in on the act as soon as online poker goes legal in the US. If a company of Harrah’s size and position is seriously considering expanding into cyberspace, legalization moves may lead to something after all this time around.
Another company to announce losses was MGM Resorts International. These guys have parted with about $883 million ($2/share) on account of their CityCenter project.
While the CityCenter continued to pressure the coffers of the company, the Aria’s occupancy rate has apparently gone up, together with its non-gambling revenue, so it’s not all bad news for the MGM guys.
