Vegas Casino Take Continues Slide, Bradley Theory Holding True

Otherwise, gamblers will stay close to home, figuring they can still play the games at local venues without dropping so much in travel expenses.

July, the seventh month of the year, was also the seventh straight month that gambling revenues in Las Vegas declined. The troubled economy was blamed for causing consumers short on cash to forego spending on travel and entertainment.

The Bradley Theory continues to hold water, as Vegas drops in revenue occur in the face of income holding steady or even rising at some locations and tribal casinos. The Bradley Theory, first voiced by Online Casino Advisory gaming analyst Sherman Bradley here on OCA and since adopted by market experts and casino industry analysts across the country, advocated the concept that Vegas casinos have lost the "recession-proof" quality of their industry as they have diversified their product to include restaurants, hotels, and retail merchandising.

Las Vegas Strip gambling revenue fell 15% in July, to $519.2 million, according to information provided by the Nevada Gaming Control Board. For the year so far, gambling revenue is down 6.7% from 2007, reaching a total of $3.71 billion.

Stocks of the major casino operators in Las Vegas, which had been in a minor state of rebounding, fell at the news. Las Vegas Sands was hardest hit, losing almost 10% of its value. MGM Mirage was down 5.6%, while Wynn Resorts declined 4.8%.

Bradley stated, "The quickest and best way out of this hole the casinos have dug by exposing their businesses to the vagaries of the market is to retreat to the systems that made them billions. Operating the casinos as the primary concern, rather than just part of a consortium of products, would help a quicker recovery.

"If gamblers feel that they can go to Vegas and enjoy spectacular meals, stay in nice rooms, and unwind at shows without drawing money away from their potential table and slot investments, Vegas will return to its rightful spot as the gaming jewel of the country. Otherwise, gamblers will stay close to home, figuring they can still play the games at local venues without dropping so much in travel expenses."