Las Vegas casino operator Majestic Star Casinos files for Bankruptcy
The Las Vegas casino Operator Majestic Star, has today filed for bankruptcy protecting after defaulting on $80 million in loans on his hotels and casino across America.
Don Barden, CEO for Majestic Star Casinos has said that the recession and strong competition are the causes for the financial meltdown but was confident that they would be able to continue trading despite reports saying that the company owe over $750 million and are valued at only $405 million.
With the gambling industry picking up momentum in recent years and Casinos becoming more widespread than the confines on Las Vegas more competition is appearing in places like Colorado, Mississippi and Indiana.
Lehman Brothers, a victim of the recession already and needed to be saved by the American bail out own around $46.3 million in the company and Goldman Sachs another $64 million in financial backing will be very concerned about the bankruptcy announcement.
The recession is showing no signs of recovery as of yet despite some countries in Europe beginning to recover – America may not begin to for a few more years yet. Whether or not Majestic Star Casinos can last the recession will remain to be seen.