U.S. Casinos Suffer Lower Profits Because of Struggling Economy,High Oil Prices

On July 27th, 2008, Casinos believed for a number of years that they are virtually immune on whatever trouble the economy have inside the country or around the world. But for the first time in decades, casinos are feeling the heat from a weak economy. Not only profit numbers are down, but the stock of the casino organizations have also slide down because of the sluggish economy.

A gambling analyst with Deutsche Bank, Andrew Zarnett said that the situation is troubling. There is uncertainty with the present condition of the economy and the gaming industry is feeling the pressure. Zarnett is just one of many people that firmly believe that the economy has a huge effect in the gaming industry. Increasing gasoline prices may be one of the vital factors that have affected casino revenues. Players who usually travel one hundred miles to go to a casino establishment cannot afford to go to an actual trip these days.

The rising gasoline prices not only affected players who have been traveling to the casino by car, but also those that usually fly when going to live casino. Airline companies have increased the costs of their flights which mean that more people cannot afford to take their usual trips to the Las Vegas strip. The casino facilities in Atlantic City and Las Vegas will rebound from their revenue losses most likely but the construction of new casinos will be put on hold for a whole.

While a lot of U.S. states are expanding their gaming laws, casino developers are now being cautious regarding building new casino establishments around the United States.