Another Casino in Nevada Shuts its Doors
In olden days the Cal Neva Lodge was one of the most popular handouts for the Rat Pack. Sinatra, Sammy Davis Jr. and many others frequented the location, wanting to take a chance at the gambling hot-spot. Now things are changing. It seems that the recession got to even this landmark location and it closed down last Wednesday. The resort is owned by Canyon Capital Realty Advisors and the company announced that it would be closing the casino to look for a new third-party operator to handle the casino. In essence, what Canyon Capital did was cut all ties with Luna Gaming Tahoe.
The closing of Cal Neva Lodge is just another example of how problems have arisen due to the recession of 2008/2009. Casinos that once were strong and buzzing with excitement are now on the decline. Their patronage is slowing down considerably and making it difficult for the facilities to manage. Most problems began when the unemployment rate began to skyrocket. It caused potential and annual visitors to stop their trips to Las Vegas. Most people were forced to completely cut out their discretionary spending, in an effort to cover necessary bills. A record number of two-income families, evolved into single- or no- income households. This is where much of the problems for Las Vegas began. Add to the issue the lowered home values and bursting credit bubble, and you have a recipe for financial disaster.
In the past year, things have not gotten much better. Operators are hopeful, but they know that the road to recovery for the city will be hard. The plan is to create specials and bonuses that attract more customers into the gambling hotspot. Many industry insiders believe that the market is turning around, but much slower than anticipated or hoped. It will take months, maybe years for Las Vegas to return to its old state of operations. Until then more casinos like the Cal Neva Lodge may be lost. It is a history of tradition that is being eliminated, but the economy is unforgiving. Only time will tell how long it will take to change things around and bring Las Vegas back to its old days of glory.
