1297735--3/31/2009--American_Casino_&_Entertainment_Properties

related topics

{competitive, industry, competition}

{cost, regulation, environmental}

{debt, indebtedness, cash}

{cost, contract, operation}

{cost, operation, labor}

{condition, economic, financial}

{property, intellectual, protect}

{loss, insurance, financial}

{customer, product, revenue}

{gas, price, oil}

{financial, litigation, operation}

{personnel, key, retain}

{capital, credit, financial}

{loan, real, estate}

We have significant working capital needs, and if we are unable to satisfy those needs from cash generated from our operations or indebtedness, we may not be able to meet payroll or statutory tax payment requirements. If our economic performance were to decline, we may not be able to generate sufficient cash to service all of our indebtedness and may be forced to take other actions to satisfy our obligations under our indebtedness, which may not be successful. We may be unable to raise additional indebtedness because of the recent instability in the financial markets. Our business is subject to extensive governmental gaming regulation, which is costly to comply with, and failure to do so could cause us to incur penalties or force us to cease operations. Changes in tax laws could increase our cost of doing business and negatively affect our profitability. Rising operating costs for our gaming properties could have a negative impact on our profitability. We face substantial competition in the hotel and casino industry Our operations may be adversely impacted by expanded Native American gaming operations if they attract patrons that otherwise would visit our properties. Because we are currently dependent upon four properties for all our revenues, disruption of our operations at one or more of these properties will have a significantly higher impact on our profitability than it would for a gaming company with more operating properties. Because all four of our gaming properties are concentrated in a relatively small area in Nevada, we are subject to risks associated with the conditions in that area and in the areas from which we draw patrons. Economic downturns, terrorism and the uncertainty of war, as well as other factors affecting discretionary consumer spending, could reduce the number of our visitors or the amount of money visitors spend at our casinos. A majority of our patrons at the Stratosphere travel from out of state by air or car. Increasing transportation costs or transportation disruptions may decrease the number of visitors, thereby lowering our revenues and profitability. Three of our properties depend on the local market for patrons, and we may not be able to continue to attract a sufficient number of guests and gaming customers in Nevada to make our operations profitable. Claims that we infringe upon third parties intellectual property rights could be costly to defend or settle, and thus could reduce our income or increase our net loss. From time to time, we are a defendant in a variety of litigation and other adversary proceedings, which are costly to defend, divert management s attention from our operations and may cause us to pay damages if we are unsuccessful in defending against the actions or unable to cover damages with insurance proceeds. We may incur property and other losses that are not adequately covered by insurance, which may harm our results of operations. A significant portion of our labor force is covered by collective bargaining agreements, and a dispute with covered employees or new labor agreements may lower our revenues and increase our costs. Our hotels and casinos may need to increase capital expenditures to compete effectively but we may not have sufficient funds to do so. Our hotels and casinos may incur substantial costs as a result of our growth and expansion strategy. We may find it difficult to expand our business into additional states due to varying state regulatory requirements. The loss of management and other key personnel could significantly harm our business, and the quality of individuals hired for positions in the hotel and gaming operations will be critical to the success of our business.

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1297735--3/31/2009--American_Casino_&_Entertainment_Properties_LLC