LAS VEGAS - Las Vegas is known for its extravagance and excess, but more Las Vegas tourists are spending less on gambling.
"People will think twice, because when you gamble, you have to have disposable income. You can't gamble with your rent money, with your food money," visitor Susan Terenzoni said.
"You conserve where you can, because you've got to put food on the table," said tourist Fran McWeeney. "But, the economy is turning around. I think we're on the upswing."
So is the cost of energy. The average price of a gallon of regular unleaded gasoline in Las Vegas is approaching $4.00. Airlines are raising air fares in response to rising fuel costs. Analysts worry rising fuel prices will erase recent positive trends in the Las Vegas gaming sector.
"If gas prices stay elevated for an entire year - so you start to have consumers spending additional money throughout the year and potentially capturing another $1,000 in any given year - that's the cost of one trip to Las Vegas," said Applied Analysis principal Brian Gordon. "We need to see those gas prices stay elevated for a minimum of six months before we start to see a major impact here locally."
If sticker shock at the gas station hurts casinos, Moody's Investors Service could change its U.S. gaming industry outlook from ‘stable' to ‘negative'. The credit rating agency says MGM Resorts International and Caesars Entertainment are most at risk.
Moody's Investors Service says some properties will fare better. Wynn Resorts and Las Vegas Sands Corporation get most of their revenue from foreign markets. That helps insulate them from the effects of high gas prices at home.
Moody's says the Las Vegas Strip is vulnerable, because most of its customers drive to Las Vegas from California. As of Monday, the average price for a gallon of gasoline in Los Angeles is $4.04.
