“Too rich for our blood”
While the Las Vegas gaming industry has seen a few major buyouts such as the Aztar Corp. and the Hard Rock Cafe in the past few months, a few other investors are pulling back. For them, the market price has become too rich for their blood.
Reuters is reporting that at least two companies, Trump Entertainment Resorts Inc. and Penn National Gaming Inc. are pulling back on their plans to break into the Las Vegas casino arena. Cost are just too prohibitive even though the lure remains strong. It appears many private investors have the money to throw at these types of projects, but public companies must temper their offers given their responsibility to shareholders.
The suggested outcome may be a few more joint venture projects by big names looking for a way into the industry and Las Vegas.