Binion�s struggling big time April 6, 2007
For the most part, online gambling casinos have always made millions. After all, it is extremely convenient for players who are not near casinos and can lawfully play online. But there is one casino that has been a staple in Las Vegas long before many of us were born � let alone old enough to play poker.
Gambling losses at Binion's amplified substantially last year. This spurned talk that the owners of the well known casino in Vegas should sell the famous property to a gaming company that can turn it around. Instead of perhaps living in the past � this casino needs a shot in the arm. After all, keeping up with the Jones in Vegas is a full time renovation is it not? This goes double if the casino is located in the ill fated Downtown Las Vegas area. Not blaming everything on the location, but the Downtown area is seemly farther a farther away from The Strip every year � no matter what promos the area comes up with.
Reported earnings before interest, taxes and depreciation at Binion's were $3.1 million in the red last year, compared to a positive cash flow of $580,000 the year before that. Even those numbers are dismal.
The casino�s cash flow, in the fourth quarter of 2006 was $1.5 million under, double the negative cash flow of $660,000 Binion's reported in the last quarter of 2005.
Overall, (all properties listed) the casino company, which is profoundly invested in race tracks and slot machine games in West Virginia, Ohio and Pennsylvania, reported an annual 2006 profit of $4.4 million, down from a 2005 profit of $7.7 million. This is not a great amount to carry the Vegas casino property which is basically bleeding to death.
Quarterly revenue rose 5.2% to $86.7 million from $82.4 million. Alas, more is essential.
Company officials are scheduled to discuss the earnings at once. A statement associated with the earnings report, however, said a decrease cash flow was due in large part to Binion's operating results. Expenses related to a slot machine referendum in Ohio and pre opening costs at its Presque Isle Downs casino in Erie also have something to do with cash flow, but a thorn in the side seems to be what Binion�s has become as of late.
It is quite clear the company must slim down to properties that are producing favorable income.
The company has already motivated itself to sell of its other Vegas property, Speedway Casino.
Even before the operator of Binion�s purchased the Speedway Casino, the more than half a century old casino was in trouble with low earnings. Three years ago, gaming regulators focused in on Binion's Horseshoe, founded by Nevada gaming pioneer Benny Binion, and required a shutdown of the property to make certain former owner Becky Binion could pay mounting debts that were in order.
Later, Harrah's purchased that property � for the name and profitable World Series of Poker branding essentially.
Only one month after that, The same company that owns Binion's now bough it.
Binion's is not the only casino having trouble in the Downtown. As we already mentioned to our online gambling news article readers, the entire Downtown Vegas area is in need of big changes.
While company officials believe Binion�s can get better � it will not be as successful as it was in its prime many years ago.
Many people in the gaming and gambling business (even online casinos and onlin egamblign companies) feel that Binion's would be better off if an gaming operator with more knowledge in Downtown Las Vegas issues took over. Look at the owners of Main Street Station, California and Fremont casinos Downtown, and the Golden Nugget � these are examples of flourishing casino property operations.
Improving the performance of Binion's could help neighboring casinos as well. Bringing in more gambling fans will cause a great amount of new gaming traffic to neighboring casinos.
As many online gambling fans would want it, we would love to see the Downtown Las Vegas casinos improve. After all, you can never have too many casinos right? Hey, as long as they have something positive to offer why not.
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