Caesars Palace casino is going ahead with its expansion plans. The $1 Billion project will continue even though several construction projects have been forced to close due to the economic downturn. The project is being funded by the Harrah ’s entertainment group. The companies profits were in fact down from the last years quarter but the decision has been made to continue to the construction of the new casino.
Steven Wieczynski, gaming analyst for Stifel Nicolaus Capital Markets said,“Overall, the company indicated that the demand environment is tough, and they were not willing to estimate when the market would trough”.
Harrah’s Chief Executive Officer Gary Loveman said, “The first half of the year presented us with the most turbulent economic conditions the casino industry has faced in years. Customer visitation fell in the second quarter as consumers coped with higher fuel costs, declining asset values, the impact of widespread flooding in the Midwest and other financial challenges.”
Rising fuel prices along with the cutting back of consumer spending has resulted in a shard decrease in Vegas casino profits.