Well, the inevitable has begun to happen. When the recession first hit and credit dried up, everyone predicted the casinos would lose out. If the banks squeeze credit, people cannot maintain their levels of discretionary spending and, sadly, gambling is always going to be one of the choices made less often. The prediction then ran on: if fewer people go into casinos and those that do go spend less, the casinos will find their profits under pressure. At this point, the forecasters would take a deep breath. This will not be a problem so long as the casinos hold their nerve. The economy will slowly pick up. Confidence will return as consumers save less and spend more. In three to five years time, casino revenues will be back to their normal levels. But, and this is where the forecasters would look grim, if the casinos try to suck extra dollars of profit out of fewer players, they risk killing the golden goose. So which way have casinos played their hands? (more…)