Even casinos can't make money

Nevada casinos lost money last year -- for only the second time in history.

By Kim Peterson Feb 22, 2010 2:05PM
It isn't just the gamblers losing money in Vegas these days. Nevada's 260 major casinos lost nearly $7 billion last year, ending in the red for only the second time ever.

To find one source of the problem, look no further than the bright lights of the Las Vegas Strip -- home to major properties for Wynn Resorts (WYNN), Las Vegas Sands (LVS) and MGM Mirage (MGM).

Casinos there took the bulk of the hit, reporting a $4.1 billion loss for the year, according to the Las Vegas Sun. That's a 686% drop from the previous year. The Strip casinos generally collect just over half of the state's gambling revenue.

"It was a horrendous year," the head of an industry group told the Sun.

This is just the second loss after a $33.5 million drop in 2003. That loss is peanuts compared to the high-stakes meltdown last year, however.

Shares of MGM Mirage dropped last week after the company reported a fourth-quarter loss of 21 cents a share, worse than the loss of 13 cents analysts were expecting.

Analysts told Reuters they were worried about hotel room pricing in the short-term. You can get a room at the MGM Grand for as little as $55 a night.

Las Vegas Sands is pinning all of its hopes to its operations in Macau, the only place in China where gambling is legal, Reuters reports. But even strong results in Macau couldn't save the company from a loss in the fourth quarter.

Wynn Resorts is expected to announce its fourth-quarter numbers on Thursday.

0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

116
116 rated 1
265
265 rated 2
429
429 rated 3
612
612 rated 4
499
499 rated 5
525
525 rated 6
701
701 rated 7
533
533 rated 8
337
337 rated 9
131
131 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
UPLULTRA PETROLEUM Corp10
COPCONOCOPHILLIPS9
TAT&T Inc9
DVNDEVON ENERGY CORPORATION9
EOGEOG RESOURCES Inc9
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.