Casino Shares Falling

LOS ANGELES – As reported by Reuters: "Shares of casino operators fell for a second straight day on Tuesday after some analysts said room rates in Las Vegas may be heading lower.

"Shares of Harrah's Entertainment Inc., the world's largest gambling company, fell $2.55, or 3.8 percent, to close at $65.10 on the New York Stock Exchange, while shares of No. 2 casino operator MGM Mirage dropped $1.69, or 3.9 percent, to $42.05.

"'Although it is still early, we are beginning to notice a negative trend in our weekly revisit rates,' Merrill Lynch analyst David Anders said in a report, referring to the difference between a quoted hotel rate four weeks in advance and the cost of the same room booked the day before arrival.

"…'If this trend continues, we believe it could encourage customers to either rebook at lower room rates or at least hold out until the last minute to book rooms," Anders said.

"But others said individual travelers are a relatively small part of overall business at large casinos which derive more business from conventions and group meetings, which are seeing strong demand…"