“As we see it, most of the financial carnage is over and we’re seeing a period of improved business fundamentals, high flows from the top bottom line and limited supply growth into the late decade,” said Simkins. “The Las Vegas economy may never experience peak highs in peak seasons.”
Analysts don’t believe that the local gaming market will probably expand for the rest of the decade, just as they don’t expect expansion on Strip. Companies such as Station Casino and Boyd Gaming will have parcels from areas that considered the possibility of casino development.
Simkins said steps taken by local casino operators to address the recession, such as cutting costs, could pay off with a modest increase in cash flow over the next two years.
So what does it take to get the market back on track completely? 슬롯머신
Most analysts believe that Las Vegas-area casinos will only benefit if there is a significant recovery through various measures, such as creating jobs in non-game industries, which significantly help reduce unemployment. As a result, the economic recovery may facilitate a rebound in the housing market.
“Anything that makes Las Vegas more diverse and similar to other major Western cities is the best job creation we can hope for,” Chakmak said.
Gaughan believes that a distinct recovery from the strip, rather than just a month or two in a row of sales growth and a slight rise in economic indicators, will give the local market the boost it needs.
“I don’t believe we’re going to see any recovery in the local market until Streep returns,” Gaughan said. “We’ve lost a lot of our employees at Streep over the past few years, and they’ve been our customers. When Streep gets hired again, we’ll see a leap forward.”
Stifel Nicolaus Capital Market game analyst Steve Weeczynski agreed with Gaugan’s assessment. He recently told investors that the path for Las Vegas locals to return is tied to the pace of Strip’s recovery.
Weeczynski said the domestic gaming market will see a trickle-down effect as strip revenue rises.
“Local recovery will lag behind strip-area recovery,” Wichinsky said. “We are encouraged by positive gross game sales in strip-area and early signs of visiting data points. It may take some time before this trend changes the trajectory of a large local recovery.”
Simkins pinned the regional game recovery to two areas: improving unemployment and stabilizing the housing market.
The construction jobs mentioned above will not return soon, but a slight decline in unemployment to double-digit levels could improve gaming revenue.
As for the housing market, according to Mr. Simkins, a housing analyst in Credit Suisse says the boom and bust of the mid to late 2000s cannot be repeated. The market needs to focus on filling vacant homes or seized homes, rather than building new supplies.
“[This] will determine whether local businesses recover from stability,” Simkins said.
Analysts believe that improving strip-area gaming, non-gaming, and hotel share will have ripple effects. In theory, tips for dealerships, restaurant servers, and other tip-based positions will begin to improve, which will help other support industries in the community.
Chakmak said the domestic market has stabilized based on last quarter’s results from Boyd’s properties. Increasing employment figures will give the market some confidence, which could lead to increased spending.
“We’re definitely a tip-driven economy and people were worried about keeping their jobs,” Chakmak said. “Tip rates have gone down and that’s just a fact of life. People are coming to our properties, but spending has gone down. With some improvements on the strip, it could circulate.”