Wynn Resorts (WYNN) is a developer, owner and operator of destination casino resorts. It currently owns and operates the Wynn and Encore resort casinos in Las Vegas, as well as Wynn Macau and Encore in Macau. Competitors include Las Vegas Sands (LVS), MGM Resorts International (MGM), SJM, Galaxy and Harrah's among others.

We currently maintain a $118 price estimate for Wynn Resorts stock, roughly 10% below market price.

According to Standard & Poor's (S&P) Case-Shiller home price index, home prices are falling faster in the nation's largest cities.

The index dropped 0.6% in September compared to August (some are reporting 0.7%), with 18 of the cities recording monthly price declines. The largest drop was reported in Cleveland, Ohio, which saw prices drop 3% compared to a month earlier. The only two cities where prices increased were Washington DC (thanks mainly to government spending) and Las Vegas (which has been battered in recent reports).

Toys R Us bought FAO Schwarz in May and is now ready to do something interesting with it.

It's a pretty bold move for a tough retail market. Toys R Us is opening FAO Schwarz boutiques in some of its stores. It's also relaunching the upscale toy seller's website, FAO.com. A year ago, this would have been suicide, but now, it might work out. With retailers in every sector fighting for an edge, this move may beef up the Toys R Us in-store experience, with the online play helping it reach higher-spending consumers that may not have access to an FAO brick-and-mortar spot.

Existing homes are starting to move again. Last month, home resales hit their highest level in more than two years, thrashing expectations. The 9.4% increase in home resales -- which entails a seasonally adjusted rate of 5.57 million -- is attributed largely to the deadline for the first-time home buyer tax credit.

According to the National Association of Realtors, the annualized, seasonally adjusted rate is up from the 5.1 million in August and far ahead of the 5.35 million expected for September (based on economists surveyed by Thomson Reuters).

Casino operator Las Vegas Sands (NYSE: LVS) announced that first-quarter adjusted profit totaled a penny per share, thanks to cost reductions and more Macau visitors. These results excluded some items, and topped the consensus estimate for a loss of roughly 2.5 cents per share.

LVS announced that its "fundamentals are getting better," with improving gaming revenue and tourism classified as "OK." The company also hopes that some visa restrictions may be removed, which could help its efforts to start a rally.

LVS has lowered its worker hours and cut jobs in order to cut costs and avoid potential defaults. The company also stopped a condominium development in Vegas and halted construction in Macau to help withstand the recession.

There are some people walking around Las Vegas and other gaming meccas with something illegal on their iPhones, and I don't mean the new Taylor Swift album pirated off the Internet. A new application, available for Apple's (NASDAQ: AAPL) iPhone and iTouch, works to count cards when its user is playing blackjack.

Obviously, this practice is frowned upon by casino officials (even when a mathematical savant is able to count cards mentally). Using an electronic device to help has been deemed even closer to "illegal," and Vegas pit bosses are said to be on the lookout. This sort of unscrupulous behavior is the last thing the gaming industry needs these days, amid reduced tourism and shrinking profits.

Reportedly, this new scam came to light at an Indian casino in California; iPhone users were apparently a little too successful and their efforts were reported to officials in neighboring Nevada.

In an economy like this, is anyone going to the game?

Yes -- but Pittsburgh people will stay in their cars (hotels are too expensive), and the Arizona people will stay in foreclosed houses (so they should feel right at home).

Speaking of hotels -- short 'em.

I received an e-mail from the Mirage in Las Vegas to come out to watch the Super Bowl for $69 a night.

Last time I was there for the Super Bowl, maybe 15 years ago, it was about $400 a night.

The Mirage is owned by MGM Mirage (NYSE: MGM), which is hovering at a technical support price. Once it breaks through, look out.

I'm not traveling to Tampa or Las Vegas -- I'm staying at home for the big game. And I'm shorting MGM.

Michael Shulman is a contributor to OptionsZone.com.

With a slowdown in the U.S. economy, the Las Vegas economic expansion has come to a halt. With people unable to pay for a gallon of gas, it comes as no surprise that they are not in the mood to go gamble. The Independent of the UK had a fascinating article about how Las Vegas is suffering with the slow economy.

According to the report: "With Americans cutting back on luxuries, and the price of transport rocketing, the so-called 'Vegas vacation' is facing the axe. This week, as the nation celebrated Independence Day, major hotels were taking stock of a fall in all-important room occupancy rates from their usually impressive 95 per cent levels to nearer 80 per cent."

Gambling revenues have also slipped 3%. Attendance at conventions, a big contributor to the city's coffers has dropped by more than 7%.

All an investor has to do to see how bad the carnage has been is to check some stocks related to the Las Vegas gambling and tourist industry. Las Vegas Sands (NYSE: LVS) has gone in the last 52 weeks from more than $148/share down to around $39, a drop of more than 70%. Ouch. MGM Mirage (NYSE: MGM) has dropped from more than $100/share to under $30.

As the economy continues to sputter, look for more trouble ahead for Las Vegas. On the other hand, contrarian investors may look at an uptick in the U.S. economy, whenever it happens, as a signal to potentially look at stocks that are associated with Las Vegas.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer's fund has no position in any stock mentioned, as of 7/6/08.

There is something rotten in Denmark, to quote from Hamlet, Act I, as well as in Las Vegas, Louisiana, Mississippi, Colorado, Iowa, and Florida. Gambling havens, once thought recession proof, are in trouble. Customer numbers are down, as are gambling, gift shop, hotel, and restaurant revenues. Casinos in Las Vegas have been hard hit, according to a recent article in the Wall Street Journal, because of billions of dollars of debt to finance overambitious expansion plans. Tropicana Entertainment filed for Chapter 11 in May, defaulting on $2.67 billion in bank and bond debt. But smaller casinos are also feeling the pain.

Isle of Capri Casinos Inc. (NASDAQ: ISLE) recently reported 4Q and FY2008 results. Snake eyes. Investors know they are not in for good news when the CEO spends the first few paragraphs of an earnings release discussing what a "transformational period" the last year has been. That's corporate-speak for "money losing," beginning with a $78.7 million write down in the value of some of the company's international assets and ending with a $51.3 million loss from continuing operations in 4Q 2008. All told, Isle of Capri Casinos lost $96.9 million from continuing operations in FY2008.The company cited increased competition in riverboat gambling in Biloxi, a smoking ban in casinos in Colorado, and a flood in Natchez as reasons for the lackluster performance. The company admits it needs to renovate 1,200 of its hotel rooms in order to attract customers back to the slots and tables.

The stock is currently trading at $4.23, near its 52-week low of $3.97.

Leave it to private equity to try to bring back Michael Jackson.

The Wall Street Journal recently reported that "Colony Capital, which owns the Las Vegas Hilton and is a major shareholder in closely held Station Casinos, is in discussions with Mr. Jackson to get him back onstage and in the spotlight via a long-term stand in Las Vegas."

Colony Capital may just have the leverage to get something done with Mr. Jackson: he owes them $25 million after the firm acquired the debt from Fortress Investment Group.

The plan is to try to revive Jackson's career with a stint in Las Vegas and, eventually, build a Thriller-themed hotel-casino there. I'm not so sure. Las Vegas has resuscitated -- or at least prolonged -- the careers of a lot of entertainers, but it's hard to think of anyone who carries as much baggage as Michael Jackson.

Similarly, a private equity firm might be able to turn around a struggling brand but, to my knowledge, the industry has never attempted to work its magic on a brand that a large percentage of Americans believe has molested children (with the possible exception of Chrysler). And legal system be darned, that's what many people associate him with.