Moody’s: Casinos in decline
Moody’s Investors Services has warned that legal gambling is facing a downturn.
“The improving trend in gaming revenues in place since the middle of last year appears to be stalling,” the company said in a prepared statement. “Momentum started slowing in March, and then in May gaming jurisdictions reported outright declines in gaming revenue. … Casino operators with significant near-term maturities or highly leveraged capital structures such as Caesars Entertainment Corp, Revel Atlantic City, LLC , and CityCenter Holdings LLC are at greatest risk. … While declining gas prices and low interest rates have boosted consumers’ disposable income and could arrest this decline in gaming demand, Moody’s points to a sharp decline in consumer sentiment, coupled with still-high unemployment and fear of contagion from the European debt crisis as troubling signs for the sector.”
Moody’s is noted for underestimating the subprime mortgage crisis and in 2010 failed to complete a contract with the Nevada Legislature for a study on the state’s tax structure.