With Economy Worsening MGM Mirage May Break Itself Up for Sell-off

In many rougher economic environments the casino business seems to be the business to be in. Even in hard times people are lured by the bait of easy money and getting rich with one roll of the dice or one magical hand in Black Jack. This rings especially true in down times as more people feel desperate and look for a way out of their troubled lives. But with the economy worsening it now seems as though not even the casino business is safe. There is clear evidence of this with the recent rumblings that MGM Mirage may be breaking itself up in order to sell itself off.

If it happens, the move will be in an effort to raise some $1.5 billion that it owes in bond payments and interest this year. Some of the properties that are said to be considered are such marquee manes as the Bellagio and the MGM Grand Detroit. According to the Wall Street Journal, sources say that "everything is for sale." MGM has been said to be in talks with creditors to amend loan agreements, but there is no word if the lenders will be in agreement or not (source: news.yahoo.com).

Why the sudden loss of interest in getting rich quickly? Where have all the gamblers gone?

It is not necessarily that the public has lost interest but rather lost funds. Going to gamble in ritzy Las Vegas takes time and money. While many Americans may have time on their hands with an ever growing problem in the job market, money is not so plentiful. Many Americans are opting to stay home instead of make a trip and the sentiment of the masses is to now cut spending wherever and whenever you can. A trip to Las Vegas that was once a luxury for many is now no longer an option.

MGM Mirage and other casinos are obviously feeling this pinch. In an industry that usually enjoys billions of dollars in growth; the companies are now struggling, like the rest of America, just to make ends meat. If MGM Mirage is unable to secure funding to pay its creditors, there may be further defaults on other loans and a very drastic and costly domino effect could take place. It is for that reason that the MGM Mirage may indeed be considering a break-up in order to sell itself off. When it comes to a thriving business in this economy there doesn't seem to be any safe bet; not even with casinos.