Harrah’s: Online Poker Could Bring in Billions
BEVERLY HILLS (Reuters) - Gary Loveman, chief executive officer at Harrah's Entertainment Inc, sees few signs of a recovery in Las Vegas, but believes U.S. legalization of online poker could bring in billions more to the world's largest casino operator by revenue.
The company reported on Tuesday that its first-quarter loss widened to $195.6 million from $132.7 million a year earlier as revenue fell nearly 3 percent to $2.19 billion.
Hit by the economic downturn, consumers have cut back on discretionary spending like gambling trips at the same time businesses have reduced spending on meetings in Las Vegas.
Harrah's, which was bought by private-equity firms TPG Capital LP and Apollo Management LP in a 2008 $31 billion leveraged buyout, operates more than 50 casinos in six countries, including Las Vegas resorts like Caesars Palace and Paris.
"We have entered into an unusual period of stability," Loveman said in an interview on the sidelines of the Milken Institute conference held here, referring to Las Vegas.
He expects little improvement in Sin City this year, noting that some signals for 2011 -- such as room rate-boosting group and convention business -- are looking positive.
The entry of several new casino-hotels on the Las Vegas Strip over the past couple of years -- including the December opening of MGM Mirage's 6,000-room CityCenter project -- has not helped Vegas operators, and Harrah's has no plans to restart work on a stalled hotel tower at Caesars Palace.
"We are waiting until we think the market can use the incremental supply of high-end rooms," Loveman said. Continued...
