In 2001, we had an economic slowdown, exacerbated by 9/11. Since then, Nevada gaming revenues had been increasing until now. It is very likely that the cooling economy is partly to blame, fueled by the mortgage crisis, but it would not be surprising that the expansion of gambling globally, not just in the United States, is beginning to take its toll.
Asian gamblers, common to Las Vegas, may be headed to Macau instead. Other US customers, feeling the pinch of the economy, higher gasoline and food prices, etc., but still desiring to gamble, may be staying closer to home.
To stem this trend, Nevada establishments need to focus on differentiators to draw customers. Las Vegas has been focusing on non-gaming elements to draw customers for some time now. Large luxury hotels, spas, restaurants, entertainment, etc., are pulling in a larger share of overall revenue, relying less on gaming.
However, gaming is still a major draw and if new, innovative gaming products could be developed and deployed, it could serve as an attractant.
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