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Gaming not recession-proof?
Following its acquisition by Apollo and TPG, Harrah's Entertainment Inc declared a first-quarter loss of $187.8million. Revenue fell 2.1 per cent, year on year, to $2.6 billion. The company joined Rank (eight per cent overall drop in revenue in the first 17 weeks of 2008) and MGM Mirage (30 per cent profit fall in the first quarter) in posting poor year on year figures.
The ‘credit crunch' and rising fuel prices are being blamed as the cause of declining casino profits in the USA, while some analysts are predicting an upturn for online gaming, particularly for low-stake jackpot games. Online gaming firm 888, for instance, posted a 38 per cent increase in net gaming revenue, year on year, for the first quarter of 2008.
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