LAS VEGAS BASED STATION CASINOS WILL SURVIVE THE BUSINESS DOWNTURN

Implications: It's a matter of time till the downturn in the gaming industry will adjust itself. Can Station's hold on and still claim their #1 spot within the locals market. What will their recent private buyout partnership do to control losses? It's not a wait and see market ------

Analysis: Station Casinos has always been a company that has avoided any real pitfalls. The downturn in business will, in effect, hit all types of businesses. The tourism industry usually is hit hard as it always has the spendable income coming into play. Consumers tend to hold back on turning loose of these dollars when things are tight. The industry in general is facing some hardships at this time. Housing, employment layoffs, high gasoline prices and food and beverage prices skyrocketing. So, you say to yourself, what's the answer for these properties like Stations. They can sit on their hands and wait for the turn or....... Like the smart business people they are, they create new incentives for customers to come to their properties. If you speak with those in the local end of this great business,  they all have much of the same story to tell. They feel that the actual customer count has remained fairly constant. They are finding that the stay at the property has shortened and the spendable cash outlay by their guests has been reduce by about half. Not very hard to understand during this hardship period. Seems like the customer is giving a priority to more essential things.

Stations has stepped up their Rewards Programs as has other properties. They are of the opinion that they must make greater incentives to keep people coming into their casinos. Yes, they have
lay off some work force, but in most cases it was in the area where it did not put a burden on the line staff and the needs of their guests. These are workers that will be on the short list for rehire when things have a better outlook. It's a fact of doing business that cuts are made when needed to protect the integrity of the company.

All in all, this is a very strong industry - you have to applaud companies like Station Casinos in their effort to keep all on an even keel while facing a bit of financial hardship.............