Some casinos won, others lost
Like blackjack players who have been playing for hours, powerful corporate casinos can tell whether they have good or bad shoes through stacks of chips. Two casinos in Nevada are looking for new transformations. Regent Casino in Summerlin, Nevada, filed for bankruptcy protection on Nov. 21. The casino failed to repay its $5 million loan in September, laying off 500 employees and shutting down two restaurants in October. It opened in July 1999. Before the opening bell, the company reported that construction delays and cost overruns were responsible for financial problems. Regent plans to reduce at least a portion of its Blackjack stake from $5 to retool its finances and attract more local businesses. The newly opened $1.4 billion Aladdin casino has also begun to heat up, with Wall Street losing $40.2 million, compared with $4.06 million in sales. The company says it will find additional sources of financing through additional borrowing or debt or equity financing if necessary. Aladdin will have to pay $5 million to financial institutions in December and $11.7 million in interest in January. However, management remains optimistic, citing the reconfiguration of some slot areas, the popularity of London club casinos, room share and increased convention business. "We recognized because all of our predecessors experienced that we would actually be in a period of growth," said Aladdin Gaming CEO Richard Goeglaine during a recent conference call with investors. He hinted at a slow start to the opening ceremonies of Venice and Paris in 1999. However, not all skies in the gaming world are cloudy. Mandalay Resort Group, which owns properties such as Las Vegas' Mandalay Bay, Luxor, Excalibur, Monte Carlo, Circus-Circus and others in Loughlin, Reno, and Detroit, recently reported a 3% increase in business from last year. Amerista Casino, which operates casinos in the Midwest and Gulf Coast, reported an 11% increase in business, while Amerista Casino, which also operates gaming facilities in the Midwest, reported a 16% increase.