Casinos Should Stick to Knitting

Online Casino Advisory has an interesting article describing how the dip in Las Vegas casino revenues may be linked to the venue's deviation away from gaming as the primary source of revenue. In other words, Las Vegas' attempt to diversify away from gaming to help recession-proof itself may have had the opposite effect.

Recently, Las Vegas is struggling while Macao is strong. Each venue is at different ends of the spectrum with regard to diversification. Las Vegas casinos has a substantial majority of their revenue come from non-gaming activities. Macao has a substantial majority of their revenue from gaming -- like Las Vegas used to be.

If Las Vegas wanted to go back to basics, it will be difficult. There's been so much money spent to make Vegas a destination resort, it would take much more pain than this to force a sea change. However, some of the smaller off-strip properties, downtown and second-tier Strip properties might be able to adjust and try a return to the "good old days."