In normal circumstances, the abrupt resignation of Terry Lanni, chairman and chief executive of MGM Mirage, amid doubts over the validity of his MBA qualification, would be headline news in Las Vegas. But given the unremitting flow of bad news from the gambling capital of the world in recent months, this week's announcement is little more than the latest reverse in a rather nasty losing streak.

Until Mr Lanni's resignation, the spotlight had been on Sheldon Adelson, the Las Vegas Sands (LVS) boss, who has been desperately cancelling projects and raising cash in his attempts to keep the company afloat. Mr Adelson, who in May pulled out of the £75 million purchase of Les Ambassadeurs, London's plushest casino, is pumping $525 million (£353 million) of his own money into LVS as part of a $2.1 billion share issue that will dilute his family's holding from 68.9 per cent to 51.3 per cent.

Mr Adelson, who in March was still listed as the world's twelfth-richest man by Forbes magazine, could be forgiven for switching off his stock market screen. In the past year his stake in the company that owns the Venetian resort has fallen from $36 billion to little more than $1 billion.

His wealth has fallen in line with the malaise afflicting what for three decades was America's boomtown. But the sub-prime mortage crisis and dwindling consumer confidence have put paid to that record, with foreclosure boards going up at three times the rate of the rest of the US.

The situation has been compounded as airlines cut the number of flights to Las Vegas and fuel costs keep drivers at home. In an attempt to preserve cash, companies have put developments on ice. MGM Mirage, which is controlled by Kirk Kerkorian, recently suspended two projects, in Las Vegas and Atlantic City, although it calmed investor fears over its financial position by securing a $1.8 billion credit facility and banking commitments for another $500 million.

Mr Lanni claimed that his sudden resignation was unrelated to questions over the MBA on his CV from the University of Southern California, which he admitted had been an honorary degree. “If it needs to be corrected, it will be corrected,” he said, insisting he was quitting after 13 years as chairman to spend more time with his family.

Another company that has been in the wars is Harrah's Entertainment, the owner of the Caesars and Horseshoe brands in America and London Clubs International in the UK. The group, which was taken private in January by Apollo Global Management and TPG Capital in a $30billion deal, last week reported a third-quarter loss of $129.7 million against a profit of $244.4 million last time.

But one Las Vegas colossus who seems to be ignoring the downturn is Steve Wynn, whose Wynn Resorts group has continued to spend lavishly on its next development. The Encore resort, which is due to open next month and has cost $2.3 billion, is tipped to send the glitz factor to new heights. Investors will be hoping Mr Wynn's gamble pays off.

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