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Gaming News: Strike And Plummeting Stocks

13th Jul 2016
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With the current Brexit turmoil and the state of the economy this year, stocks have been hit pretty hard. Gaming companies has not been invulnerable to the shock. Gaming stocks throughout the world have experienced a reversal and have ended up in the red at the end of many trading days. Even Nevada, which is considered to be the biggest state for American gaming and gambling, has saw a downturn. According to state officials, the total gaming winnings in May were down approximately 4.5% from the previous year. Within the Vegas strip alone, the win numbers were down 11.6%. For the current fiscal year, the strip has experienced a 1.4% decline from previous year’s numbers.

Of course, not all portions of Vegas have been hit. Historic Downtown Las Vegas has actually experienced an uptick, after a weak April. In May, this portion of Vegas saw a year-over-year increase of 13.1%! Another winning has been Boyd Gaming Corporation, which runs three of the downtown casinos. At the time of this writing, the company’s share price has increased nearly 23% since the past year. During Friday’s trading, the Boyd Gaming Corporation traded down .54%. Nonetheless, the stock has a neutral or buy rating with many analysts and a target price in the twenties.

And America isn’t the only country that has been impacted by the slowdown in gaming. Even casinos with bonuses in China have experience some turmoil. Macao is the biggest gaming up in the world and the source of gambling within China. In fact, it is the only location in China, where gambling has been legalized. Over the past 15 years, the area and the area’s casinos have experienced immense growth. However, things are coming to a grinding halt and the casinos in the area are beginning to experience stagnation. The Chinese government and their anti-corruption restrictions should undoubtedly be given responsibility for some of the slowdown. Revenues for the casinos, which happen to operate in the area, have decreased substantially in 2016.

In March of 2016, revenues fell as much as 16%. April and May saw a 10% decrease respectively. Many analysts have blamed the downturn on the Chinese government’s decision to ban phone betting. This went into effect in May. And, these restrictions will not be eased anytime soon. It is expected that the Chinese government will actually tighten regulations in the coming year. Donald Trump, Republican presidential nominee is finding himself in the headlines quite a lot here lately, but the reasons are not relevant to his campaign. This comes after one of the five Trump Taj Mahal casinos was unable to reach a new deal.

The strike is scheduled to start on Friday, with 1,000 union members agreeing to participate in the walkout. This is bad news for owner, Carl Icahn, since this is July 4 weekend. A bankruptcy ruling, granted the casino permission to cancel healthcare coverage and pension benefits. Although, Trump no longer runs the casino, it still bears his name. Nonetheless, the businessman has made a splash in the political scene and the project may be detrimental to his campaign.

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