Gamblers Cut Back and Casinos Struggle in 3rd Qtr

FILE - In this Aug. 28, 2007 file photo, the Venetian Macao Resort Hotel is shown in Macau. The...

FILE - In this Aug. 28, 2007 file photo, the Venetian Macao Resort Hotel is shown in Macau. The casino industry continues to struggle in the third quarter, with gamblers still clamping down on their spending. Such ongoing belt-tightening, coupled with increased expenses, pushed Wynn Resorts Ltd.'s profit down for the second consecutive quarter Tuesday, Oct. 27, 2009. (AP Photo/Kin Cheung, file)

(AP)

Gamblers are wagering less than a year ago, visiting casinos less often and holding back on extras when they do, continuing trends that left the industry struggling in the third quarter.

Industry leader Harrah's Entertainment Inc. lost $1.6 billion, including a $1.33 billion drop in the value of its assets. Boyd Gaming Corp. said its profit fell will wait at least three years before finishing building its $4.8 billion Echelon casino, which looms empty over the Las Vegas Strip. Stocks plunged across the industry.

At Wynn Resorts Ltd., where lower spending by leisure travelers and businesses pushed down profit for the second quarter in a row, billionaire CEO Steve Wynn said his company won't expand in the U.S. until the business environment improves.

"The landscape in Las Vegas is troubling and it's rife with uncertainty," said Wynn, whose company is based across the Strip from the Echelon. "It's tough to understand what's going on; my 40 years in Las Vegas is not serving me very well at the moment."

Wynn Resorts said its net income fell 33 percent to $34.2 million, or 28 cents per share, for the period that ended Sept. 30. That's down from $51.2 million, or 49 cents per share, a year earlier.

Both Wynn and Harrah's said they struggled to fill beds on midweek nights during the third quarter, though Wynn's room, food and beverage, retail and entertainment revenue rose for the quarter, helped by sales at its $2.3 billion Encore Las Vegas resort, which opened in December.

Harrah's — which operates more than 50 casinos around the world from its headquarters in Las Vegas — said it would have lost $296 million if it hadn't written down its assets. It lost $129.7 million during the third quarter one year ago.

"Lower spending by consumers continued to impact revenues," chief executive Gary Loveman said in a statement.

Harrah's said its revenue fell abroad and in each U.S. market where it operates. Overall revenue dropped 13.7 percent to $2.28 billion from $2.65 billion a year earlier.