As we’ve written about extensively over the past few weeks, slot sales are likely to be down considerably in 1H 2009 after a likely strong December quarter. Slot sales to new casinos and casino expansions could be down around 50%. Replacement demand should fall as well despite an easy comparison, as corporate CFO’s reign in Capex to stave off liquidity issues.
Throw a tribal casino downturn into the mix and the picture isn’t pretty. The following are just some examples of tribes cutting back:
• Pechanga laid off 368 workers, or 8 percent of its workforce
• Morongo Casino, also in southern CA laid off 95 casino workers
• Thunder Valley Casino, managed by Station Casinos, stopped construction on a hotel and will likely downsize the project.
• Foxwoods laid off 700 workers.
• Mohegan Sun cut 600 jobs through attrition and there are rumors of layoffs for early 2009
• Odawa Casino in northern MI laid off 100 employees