Las Vegas Sands goes into the red

When times are hard, gamblers resist the bright lights of Vegas

Las Vegas Sands, the hotel and casino company, has gone into the red as a US economic slowdown sees punters stay away from the world's gambling capital.

It lost $11.2mn (£5.6m) in the first three months of 2008, compared with a $90.9m profit a year earlier.

The casino firm said it has been hit by higher construction costs, a weak US economy and tough competition in the Chinese gambling centre of Macau.

Hotel occupancy was lower as fewer tourists came to Las Vegas, it said.

"Our first-quarter operating results reflect both an intensely competitive operating environment in Macau as well as a weaker environment here in the US," said William Weidner, Las Vegas Sands' president and chief operating officer.

Gambling blues

The casino sector in Macau has boomed since a 2001 law stripped casino tycoon Stanley Ho's SJM group of its monopoly.

The slowdown makes it harder for casino companies to ring in profits

But competition is getting tough and when MGM Mirage opened in Grand Macau in December, some of the island's big spenders went there instead.

Las Vegas Sands' now plans to increase the credit it offers the high rollers in a bid to win them back.

It is also investing between $12bn and $14bn to build 20,000 hotel rooms by 2010 in Macau.

The Las Vegas-based company owns the Venetian Resort & Casino and the Palazzo resort on the Las Vegas Strip.

In Macau, it owns the Sands Macau and Venetian Macau.