Las Vegas NowWall Street Crushing Las Vegas Strip

Wall Street Crushing Las Vegas Strip

There are more signs of just how much the Las Vegas Strip is hurting in this economic downturn. One of the valley's biggest casino companies, Boyd Gaming, saw a huge drop in profits, down 73-percent in the third quarter.

The company has also announced the delay of its signature resort, Echelon, will be much longer than anyone expected. The construction site will sit quiet until at least January of 2010.

The jobs are gone and the equipment will be parked longer than first thought.

 After the Stardust saw its last roll of the dice in a spectacular demolition, from the ashes would rise Echelon, a multibillion dollar mega resort. But for now, all bets are off.

"It is unlikely that we will resume construction in 2009. Nonetheless, we remain committed to having a meaningful presence on the Las Vegas Strip," said Boyd Gaming President and CEO Keith Smith.

Boyd Gaming announced in its third quarter earnings conference call. Echelon will remain a shell of steel through 2009. Construction will be halted while executives consider a list of options.

"Those options include developing the project in phases, alternative capital structures for the project, scope modifications to the project and additional strategic partnerships," said Smith.

Dave Schwartz, Director of UNLV's Center for Gaming Research is confident in Las Vegas in the long run. The housing crisis has taken its toll on the economy and tourism has suffered, but he sees a turnaround.

"Las Vegas has seen better days, but it's also seen worse days," he said.

Steve Wynn's Encore will open by year's end. And while delayed, plans are also moving forward to build the new Plaza on the site of the Frontier.

"Depending on what the national economy does, Vegas could be in good position next year, and especially 2010 to 2011 to go forward," said Schwartz.

Schwartz believes better times are ahead, but for now it's clear, Las Vegas is trying its best to weather the economic storm.