The casinos are struggling

You'll see in April an interview I did with Jason Oakley, CEO of North American Video, who, one year in, has drastically changed the company's market approach, diversifying beyond video and casinos. Good thing. Casinos might get blasted by this economy. For instance, news comes today that Harrah's is in trouble. Yep, $24.5 billion in debt sounds like a problem when no one's really in the mood to blow all their cash on gambling right now. You'll remember that Harrah's signed that big contract with Cisco for security and more. Have to wonder whether that will actually come to fruition. The storage companies have made hay with the casinos, as have many big integrators, but the casino boom is definitely over, and you've got to wonder if there might be some contraction. Check out this casino industry blog. Major casinos are bringing back $5 tables. And for those of you who'll be in Vegas in a couple weeks, I hope you didn't book your rooms too soon:
According to travel website Orbitz, Las Vegas is slashing room rates to stay afloat amid the economic morass. The average day rate for three-star hotels in Vegas is $48, down 54 percent from 2008’s $104. The average rate for four-star hotels is $87, down 43 percent from last year’s $152. Week nights are even cheaper, says the Las Vegas Sun–you can hit the rack at the Stratosphere for just $25.99 Monday night. That’s even better than the dingy no-tell motels that line the Black Horse Pike outside Atlantic City.
Um, yes, I'm thinking we booked a bit too soon here at SSN. Crap. Anyway, once a go-to market for the security industry, gaming may be a dry well for a good 12 months, if not longer.