Sunday, July 20, 2008

Moody's puts MGM Mirage ratings on review

Las Vegas reported much larger-than-expected declines in gaming revenues in May, Moody's reported. The deteriorating market comprises about 80 percent of MGM's earnings before interest, taxes, depreciation and amortization.

Legislators need to pay attention to the industry decline and the buildout in the northeast that impacts revenues and therefore tax projections. Massive layoffs of low and moderate income workers impacts families and the community supports that they need to survive including unemployment - if they are fortunate enough to qualify and taxpayer subsidized programs.

BTW, I am looking for information on the propensity of casinos to subcontract employment of low income workers. Thereby not having the lower paid positions on the "rolls" and being able to make statments that average earnings are in the mid $40,000. Please post if you have some fact based info. to share.