But in a town where too much is never enough, here comes the new Aladdin hotel-casino complex. But the privately held resort, which will add 2,600 new rooms to an inventory that has already swollen by 12,000 in the past two years, may arrive just in time to catch the beginning of the end of the up cycle in the gambling business. But so far, the doomsayers have been proved wrong. The city is still attracting enough tourists and gamblers to go around, even with the new Aladdin, analysts say. The boost has benefited most of the strip's large operators.
Analysts think there are more good times immediately ahead for casino stocks.
Beyond Las Vegas, the riverboat business is strong. More mergers, in addition to the recent MGM Grand-Mirage combination, are possible. Stock values are still relatively low. And cash flow is up, enabling operators to pay down debt and repurchase shares. But some observers wonder if the industry is closing in on the end of a cycle, particularly if the economy runs out of gas.