The Difference between Casino and Online Casino Stocks
Ultimately, one might argue that the difference between casino and online casino stocks is the difference between old and new. Conventional casino slots have been amongst the worst performers in the stock market recently. MGM Mirage, which owns the MGM Grand Casino and the Mirage Casino, has lost 87% over the course of the recent financial crisis in terms of its stock price. Las Vegas Sands, which is another company that has major ownership of properties on the Las Vegas Strip, has lost an amazing 94%. Even Wynn Resorts which is not based solely on the Las Vegas Strip but rather has more than just gambling in its fold, has lost 67% over this entire period of time. Furthermore, there is nothing good on the horizon for conventional casino companies at the current moment in time.
Contrast this with online casino stocks and you will see that there is a very different picture developing within the online casino stock markets. Online casino operations in Europe have gained through this period of time. England and the rest of the European Union companies have all found that their shares have either stayed the same in this market or even increased in some cases and this is of course in spite of the fact that the authorities of the United States federal government have been on a veritable witch hunt since 2006 to get online casino operators and bring them down essentially through any means that will work. Add to this the fact that online casino stocks have optimistic future prospects in addition to their recent holds and it seems as though the stocks of the different casino types are polar opposites in the current market.
As previously mentioned, this is the difference between old and new. The old way of doing things was to create gigantic monuments to the rewards of gambling for the house and in doing so entice people to visit. When the economy was riding high and everyone was able to borrow loads of money this strategy worked perfectly but at the same time when the economy collapsed and took with it the availability of cheap credit, the strategy crashed and burned in spectacular fashion. Many of the casino companies are now overextended on billions of dollars worth of loans and may not have many options left with which to deal with their current financial woes.
Online casinos on the other hand operate on the principle of decreased cost. From the moment they are created, their main goal is to decrease the cost of their overall operations as much as possible. In the end this results in nowhere near the same satisfying amount of luxury and service as their offline counterparts but at the same time the games are still fun to play and statistically speaking you get to keep more of your money at the end of the long term probability. You can also play online casinos from home, cutting down on transportation costs entirely. Once again, it is the difference between old and new.