Analysts play down Vegas casino slowdown fears

Analysts have played down fears that declining revenue figures for Las Vegas casinos in recent months may signal a more worrying financial outlook.

Analysts play down Vegas casino slowdown fears

Casinos on the main strip in the city have reported five consecutive months of year-on-year gaming revenue falls, while establishments in downtown Las Vegas and on the Boulder Strip have posted decreases in three of the past four months, according to the latest available data.

Across the state, there was a fall of nearly 2% in gaming revenue between June and November 2024, while there are expectations that December’s figures will show another soft month.

Slot revenues

However, analysts and operators have cited several factors for the slowdown, including some exceptional months in 2023 and a fall in returns generated from baccarat table games. The inaugural 2023 Formula One Las Vegas Grand Prix also had a greater economic impact than the 2024 race, observers have claimed.

However, the fact that slot machine handle is up nearly 2% year-on-year “indicates that things are still pretty healthy in Vegas,” according to Macquarie Capital senior research analyst Aaron Lee said.

“I think there has been some pulling back,” Lee told the Las Vegas Review-Journal. “But overall, I would say that things are still very stable if you look at the underlying demand fundamentals.

“People have actually spent a lot of money over the past couple of years, and so there’s going to be some natural pulling back [in leisure demand]. But in terms of our outlook, we think on the gaming side, revenues will probably be flat to slightly up in 2025.”

Non-gambling revenues

Brendan Bussmann, a gaming industry analyst with Las Vegas-based B Global, who cited that consumers had endured two “technical recessions” in the last four years, added: “A slight downturn in numbers does not necessarily indicate softness in the market but other factors that have contributed to the overall current environment.”

There is also optimism regarding the rise of non-gambling revenues at casinos, with food, drink, entertainment and hotel room revenues all solid, while some of the strip’s biggest operators have already revealed increases in conventions and meetings this and next year.

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