EDITOR'S LETTER: A fine mess
by Marian Green
November 2, 2008
Looking for answers during the downturn? The big G2E show and little Laughlin, Nev. may have a few solutions
Lining up three sevens doesn’t always add up to
a lucky number, as the stock market found out when the Dow industrials tumbled
777 points Sept. 29 following Congress’ failure to pass the $700 million
bailout.
Gaming stocks took it on the chin, and the next day they rebounded, as
the market surged 485 points, but it wasn’t enough to bring many gaming stocks
out of their swoon.
A report by
the firm Applied Analysis showed nine out of 10 major gaming stocks dipped in
September from their August average daily stock prices, marking the sixth time
in seven months that gaming stocks fell. Just one of the 10 showed improvement,
Ameristar Casinos.
“The effects of bank closures, liquidity challenges and overall fear
within the system have wreaked havoc on the majority of industries, including
gaming,” Brian Gordon, a partner in the Applied Analysis financial firm that
produces a gaming stock index told the Las
Vegas Review-Journal.
We all know
it’s bad out there, but the big questions are how much worse will it get, and
for gaming, what effect will the continued foreclosures and plummeting 401k’s
have on the gaming visitor? We already have seen some of the ramifications of
fewer visitors and reduced gaming wallets. Gaming revenues are down. We’ve seen
Echelon and the Plaza Las Vegas project go dormant, and witnessed the layoffs
of employees as business drops. The convention business also has experienced
smaller turnouts at events, and that translates into even more lost dollars for
casino-hotels.
Where the
floor is no one really knows. How long this economic downturn (OK, recession)
will last, no one really knows.
Will people
pull further inside their shells, worried that the next day will bring even
worse news. Or, in the case of gaming, will they still come, given that a trip
to Las Vegas or Atlantic City or the nearest Native American
casino can be a value vacation. If they do, it’s a good bet they’re not going
to be ordering bottle service at the ultra lounge or springing for the best
seats at a Cirque show.
But those in
the gaming industry may find some answers at this year’s Global Gaming Expo
conference, Nov. 18-20, at the Las Vegas Convention Center.
Kudos to the American Gaming
Association, which produces the conference and gaming show with Reed
Exhibitions, for including timely sessions covering the current economic
landscape and its effects on the future of the gaming entertainment industry.
Like you own the
place
In the early
1990s, Laughlin, the Nevada-Arizona border town consistently was a top draw for
gamblers. Even Steve Wynn wanted in on town founder Don Laughlin’s action, and
soon his Golden Nugget joined the hotel-casinos lining the river.
Before the mock pirate ship battles, the pyramid and the dancing
fountains of Las Vegas,
Laughlin was a happening gaming spot. Then came the megaresort boom in Las Vegas, along with the
rise of Indian and riverboat gaming, and Laughlin took a big hit.
But, in the wake of all that, Laughlin didn’t just resign itself to the
situation. Instead, it went about thinking up new ways to drive visitation.
Special events, such as SCORE racing, along with a refocus on the old-school
playbook of ioffering rooms, dining and good entertainment at a value price, have gone a long way toward
shoring up the situation.
Now, in the face of a tough economy, Laughlin’s
taking a new tack. In September, the Las Vegas Convention and Visitors Authority
in conjunction with the Laughlin Visitors Bureau rolled out a new campaign
called “Laughlin. It’s Like You Own the Place.” It emphasizes the VIP
treatment, convenience and affordability of Laughlin, and targets the 40- to
60-year-old demographic of people who have disposable income but don’t want to
overspend. Nothing comes easy for this gaming hamlet, and it probably never
will, but Laughlin deserves credit for its efforts.
Marian Green
greenm@bnpmedia.com
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