One of the Oldest Casino Companies in Vegas to File Bankruptcy

Casino News - July 29th, 2009 - Written by Bonnie

Station Casinos Inc. has, as of Tuesday, filed for bankruptcy. Amidst the calamity in the economy, they are the most recent casino company to meet financial strain that would prompt this action.

With over $5.5 billion dollars of debt, Station Casinos has been unable to reach agreements with their lenders. The casinos under the Station umbrella will continue to operate, but they have sought protection to keep in motion. The court issues could be a long, drawn out process, but bondholders are hoping for the best.

Station Casinos Inc. has provided Vegas gamblers with casinos since the bicentennial, and only as of late have they pushed for more lavish and luxurious venues. Their top end venues have seen a decline in revenues as even the highest of high-rollers have begun to slow down their gambling.

Station is not one of the larger casino companies, and as such they have been unable to keep up with the weak economy. Many small casinos are filing for bankruptcy, as gambling is not a recession proof industry. If the trend continues, only the big dogs may be able to stay afloat.

They were entitled to another $150 million dollars in loans with the hope that they can turn the situation around. At this point it may be nothing but luck that saves Station from the downhill tumble they are currently experiencing.

As more casinos are springing up throughout the nation. Vegas and Atlantic City are seeing more competition for the gambling dollars. Many people are, instead of traveling to one of the corners of the nation, remaining local. Despite these problems, casinos are still offering promotions and special packages to get gambling money back into their coffers.