Landry's Gaming Unit Profit Falls 40%

LAS VEGAS-Landry’s Restaurants this week reported less than stellar third quarter performance from its gaming unit, though it still turns a profit for the company. The unit consists of the Golden Nugget casino-resorts in Downtown Las Vegas and Laughlin, NV. Next week, Landry’s will open its $135-million, 500-room Rush Tower at the downtown Las Vegas Golden Nugget, raising the room count there to more than 2,400, the largest in the Downtown market.

Landry’s gaming unit saw its profit decline 40% to $7.6 million from $12.7 million in the same year earlier period on a 13.5% decline in net revenue $52.4 million from $60.6 million. Casino revenue fell 8.5% to $32 million, room revenue fell 22% to $11.8 million due primarily to lower occupancy and room rates on the Strip, and food and beverage revenue fell 13.3% to $10.8 million.