USA Today reports that several major casino companies are wrestling with debt burdens taken on before the recession. The increased competition will only exacerbate the financial pressure on the bottom line for many casinos.
Some of the casino companies cited included Ceasars Entertainment and MGM Resorts International in Las Vegas and the Foxwoods casino in Connecticut. The paper also said casinos in the Atlantic City and Reno markets will also continue to face financial pressure from increased competition. One takeaway: the financial troubles facing many casinos is creating lucrative work for bankruptcy attorneys.
More broadly, the financial struggles of the casinos underscores how the growth in gambling in many states is unsustainable. States that rely on gambling revenue to fund operations will likely find a shrinking pot. The problem is there is only so much money states can take from gamblers. As more and more states legalize casinos and expand other gambling operations, look for the casinos to continue to cannabilize one another.