Gambling Revenue Suffers in Las Vegas

Gambling revenues have continued to decline in Las Vegas, contributing significantly to the city’s worst economic state since the 1940s. Worst of all, it seems that the city’s troubles may extend well beyond the gambling industry.

According to an article by Adam Nagourney of the New York Times, the current unemployment rate in Las Vegas is an astounding 14.7 percent, well above national levels even during the peak of job losses during the recent recession. This mirrors the situation throughout the state of Nevada, where unemployment is at 14.4%, compared to a rate of 3.8% ten years ago.

Much of the local economic downturn can be tied to the gambling industry, which has seen declining revenues over the last three years. Although these revenues seem to be leveling off, they are currently back to the levels seen in 2004. Experts believe that the downturn in the gambling industry may have been sharper in this recession than in most, due to the fact that many people saw large losses in retirement accounts and other investments, making them less comfortable gambling with the money they did have when their futures seemed less secure.

Other factors have also contributed to the local downturn in Las Vegas. Construction, another vital industry throughout Nevada, was another sector hit extremely hard by the recession. The state has also now led the nation in housing foreclosures every month for nearly four years.

The gambling industry also faces new threats, as more localized casinos have been built in many parts of the United States, and online gambling legislation could threaten to keep more gamblers at home.

However, gamblers who do head to Las Vegas can take advantage of great deals and attractions. According to Nagourney’s piece, rooms at the Sahara Hotel and Casino on the strip are going for as little as $38 a night. With hotels having trouble filling their hotel rooms, promotional offers are common, making it a great time to travel to Vegas for those who can afford it. In addition, new casinos (such as the Cosmopolitan) are under construction, and the new CityCenter has added 5,000 new hotel rooms along with retail malls and much more next to the Bellagio.