LVS & MGM Resorts Counting On Georgia To Boost Revenue

Las Vegas Sands Corp and MGM Resorts are two of the biggest gambling enterprises in the world but have experienced a significant decline in revenue during the last couple of years. One of the reasons for their declining revenues is due to the collapse of Macau’s gambling industry that lost over $100 billion in 2014 due to the anti-corruption crackdown launched by Beijing.

Macau’s gambling industry has continued to decline in 2015 and analysts do not expect things to change in 2016.

This has forced gambling enterprises like the Las Vegas Sands Corp And MGM Resorts to change their expansion strategy and focus on other emerging markets to set up new casinos.

While most gambling establishments concentrate on countries like South Korea, Vietnam, Cambodia and the Philippines, Las Vegas Sands Corp And MGM Resorts are looking at Atlanta, Georgia.

Ever since the state of Georgia announced the possibility of legalizing the casino industry in the state, there has been a rush by some of the top gambling enterprises to submit draft proposals of what they would do for the state of Atlanta should they receive a license to open a new casino.

Key executives from these top gambling enterprises have already met with Georgia’s state legislators to talk numbers and highlight how much Georgia could earn from gaming revenue taxes. These extra funding will be used by the state to boost its Hope Scholarships which are used to fund educational programs. It is estimated that close to $288 million could be generated in the gambling industry is legalized.

Jim Murren, the chairman and chief executive officer of MGM Resorts has stated that his company would be willing to build a $1 billion casino resort in Atlanta which would create around 30,000 jobs and generate around $2.4 billion in annual revenue. While these numbers and estimates look very appealing on paper, there are many who are skeptical about what the gambling industry can actually do.

The decline of the casino industry in Atlantic City during 2014 resulted in the closure of four casinos and sent thousands of locals into unemployment. Kasim Reed, the mayor for Atlanta recently visited a casino in downtown Detroit and came away unimpressed. In a statement, Reed said

I am really uncomfortable with it. What I see in the casinos is people getting off work from Ford and Chrysler with their ID badges on. Even so, “I’ve got to remain open and continue to listen.