Will some of well known casino names disappear in 2009?
Sunday 30th November 2008
Over the last few weeks we have seen further problems for Las Vegas Sands and Trump Entertainment reflecting the difficult nature of the off-line casino industry in the US and also worldwide. While the situation for Las Vegas Sands seems to have improved in the short term it would appear that Trump Entertainment is on the verge of serious financial hardship unless it can reorganise and reschedule debts with its bankers.
Yet again we may see some of the leading lights of the US casino industry bite the dust in 2009 although when you consider the number of a legendary US financial institutions which have died in 2008, this does not seem out of the question. Many are now suggesting that the industry as a whole has overextended itself into the Far East and other new markets around the world with literally hundreds of billions of dollars committed to a number of massive ventures.
It looks very much as though some of these larger commitments will be mothballed or cancelled in order to retain liquidity in the short term and shore up balance sheets. While there has been no suggestion of assistance from the US authorities up until now this is something which must be under serious consideration in the halls of power in America.