Gaming Stocks Weak Following Wynn (WYNN) Results, Obama Comments Hurt
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Gaming stocks are weaker following disappointing results from Wynn Resorts (Nasdaq: WYNN) after the close. Wynn is down 18%, MGM Mirage (NYSE: MGM) is down 14% and Las Vegas Sands Corp. (NYSE: LVS) is down 17%.
The results showed that Las Vegas continues to deteriorate.
Wynn said comments from President Barack Obama, criticizing elaborate trips from companies that received taxpayer money, has led to Vegas convention cancellations from healthy companies.
Commenting on Obama, CEO Stephen Wynn said, "The President, Obama in what amounted to a slip of the tongue, I imagine, just a conversational nuance, said he doesn't think that people that received benefits from the government should be going on junkets to expensive places or Las Vegas. And he used Las Vegas as a metaphor for wasteful spending in effect, which stigmatized the convention business that could come to Las Vegas. I'm sure the President didn't mean to stigmatize the convention and meeting business of Las Vegas when it was conducted by companies who weren't on the government dole. But the effect that it had, for example, was one particular convention we had currently was $5 billion worth of business."
The results showed that Las Vegas continues to deteriorate.
Wynn said comments from President Barack Obama, criticizing elaborate trips from companies that received taxpayer money, has led to Vegas convention cancellations from healthy companies.
Commenting on Obama, CEO Stephen Wynn said, "The President, Obama in what amounted to a slip of the tongue, I imagine, just a conversational nuance, said he doesn't think that people that received benefits from the government should be going on junkets to expensive places or Las Vegas. And he used Las Vegas as a metaphor for wasteful spending in effect, which stigmatized the convention business that could come to Las Vegas. I'm sure the President didn't mean to stigmatize the convention and meeting business of Las Vegas when it was conducted by companies who weren't on the government dole. But the effect that it had, for example, was one particular convention we had currently was $5 billion worth of business."
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