August 26th, 2016 at 11:14:27 PM permalink
Say that to the original builders of the M Resort and Casino seven miles south of the strip.Quote: gamerfreak
I really don't understand how casinos have all these money problems. They literally have the best business model in the world. We give them money and they give us less money back.
They built a casino, credit rates soared, economy nose dived, their bonds were sold to a Scotch Bank and whoever bought those bonds wound up owning a brand new casino that did indeed follow your business model and even ran it into the ground for awhile.
The 'nut' is high. Ever since that Mirage opened up with its darned volcano. He had to make a million dollars a day just to meet expenses. Everyone predicted bankruptcy. His first day brought in darn near three million dollars. So all of Vegas (except Dotty) were off and running on the Mega Complex Themed Casino fad. Then those who provided the dancing water canon light show realized that alot of people came to watch the canon but stayed at Budget Places and the race was on to tighten belts, but MBAs and Casino Owners like to tighten the employee's belts, not their own.
The only way to keep the hats in the air was for the Evil Empire to keep juggling. Work miracles on paper until such time as you are so big that you only have to promise miracles, not work them. Keep juggling, keep changing names, keep shuffling things around with interlocking buyouts and soon the 'income' from the casinos can't sustain the corporate debt.
Remember: if the headline reads The Evil Empire is No More. That doesn't mean multimillionaires lost money, it means widows and orphans lost money and pension funds lost money. Not MBAs and Chairmen of the Board.
Being "owner" of a casino means very little if all the casino's profits have to go to service the debt. So the bondholders foreclose and who are the bond holders? The original owners who spun all that debt and sold it off to the women, chldren, pension funds and hapless public.