Following a disastrous turn during the Covid-19 Pandemic, the Las Vegas economy has rebounded quite nicely and, one expert says, shows even more growth opportunities. In a recent report from the Las Vegas Review-Journal, equity analyst David Katz noted “the fundamental strength across Las Vegas” and said near-term industry trends are positive with no evidence of consumer weakness. Katz, a gaming industry analyst whose company conducted an investment conference in June, identified a handful of properties that yield high upside. These include Caesars Entertainment Inc., real estate investment trust Vici Properties Inc., DraftKings Inc., and Churchill Downs Inc. as “prime for growth” per the article.
For this report, SBS will be going over more of this report in-depth along with more notes and thoughts about Las Vegas wagering.
As noted in the report from the LVRJ, Katz pointed out great growth opportunities for a handful of other Vegas locales as well. This includes Bally’s Corp., the operator of the Tropicana, and real estate investment trust Gaming & Leisure Properties Inc., which owns the Tropicana land. Moreover, manufacturing companies like IGT, Light & Wonder, and Everi Holdings Inc. were highlighted in the same article. In his note to investors, Katz said “among the most prominent aspects of our discussions, the fundamental strength across Las Vegas and digital gaming is notable, with specific dynamics in regional gaming.”
Also referenced in the article, Katz said the more important takes in his view are “the nascent growth in digital gaming coupled with active mergers and acquisitions, the specific growth opportunities in gaming in Las Vegas.” He pointed out Caesars and Bally’s for Vegas, along with Churchill Downs in new regional markets. Moreover, the mergers and acquisitions landscape for IGT and its gaming business could have a strong positive impact for each organization.
In the same article, Katz said Bally’s is noteworthy in the long term with future plans involving the Tropicana and an agreement with the Oakland Athletics seeking to relocate to Las Vegas. Indeed, this proposal includes ideas to build a $1.5 billion, 30,000-seat retractable-roof stadium at the Trop site. However, it would appear Bally’s is focused on opening a temporary casino operation in Chicago. The company was the successful bidder in a competitive process in Chicago and has received permission to build a $1.8 billion resort that would be the first new casino resort ever built within “a major metropolitan area.”
In his analysis of Caesars Entertainment, Katz noted Las Vegas special events that should drive higher room rates. He noted the runway for Vegas is extremely positive through Super Bowl 2024, with Caesars Palace rooms 75 percent booked at $750-$2,000 a night. Moreover, this segment should be a $500 million cash flow per quarter going forward. Finally, the positive outlook of the casino industry bodes well for real estate investment trusts and gaming manufacturers. Vici Properties is affiliated with Caesars properties and Gaming & Leisure Properties, teamed with Bally’s at the Tropicana.
After you are all squared away regarding the latest updates and notes from Las Vegas, make sure to check into the wide variety of resources that SBS has put together for you. Of course, if you are interested in learning more about the topic at hand, you should definitely peruse our online Vegas sportsbooks guide which covers the latest news coming from Sin City. Moreover, for those high rollers in the audience, the SBS VIP sports betting sites breakdown goes over the perks of VIP sports wagering. Finally, and this one is a must-read, the SBS best bonus betting sites rundown gives you a ton of tips and a catalog related to the best welcome bonus promotions out there.
About the Author
As a devout aficionado of sports, Chris Boline has carved a career within the athletic realm. A skilled scribe, he boasts a decade-long portfolio that encompasses coverage of the NBA G League, the Los Angeles Chargers, football and basketball across the country. Beyond his professional pursuits, Chris is deeply invested in his community and dedicates his leisure hours to serving on boards, collaborating with community organizations, and cherishing the company of loved ones. CURRENTLY Business Development and freelance sports writing RESIDES IN Reno, NV EDUCATION University of Nevada BS and MBA EXPERTISE -Sports writing proficiency in: NFL, NBA, UFC, boxing, golf, and some motor sports -Topical news -Promotional and marketing ideas/updates -Business development Summary Chris Boline serves in a business development sales capacity as his day job. He has previously held sales/marketing positions with The Applied Companies (TAC), KTVN 2 News and the NBA G League’s Reno Bighorns, affiliate of the Sacramento Kings. He is a Reno native and is a member of various community boards including the Nevada Sagebrush Alumni Chapter, NCET and the College of Business Alumni Association (COBAA). Chris graduated from the University of Nevada in 2015 with a bachelors in management and economics and also earned his MBA from Nevada in 2023. More about Chris: Past president of the College of Business Alumni Association (COBAA) 2022-23 Two-time honoree for University of Nevada Alumni Chapter of the Year (Nevada Sagebrush Alumni Chapter, 2017 & COBAA, 2021) 2021 NCET award for Professional Services Organization of the Year with TAC Northern Nevada Human Resources Association 2020 Best Places to Work-Northern Nevada, Second Place with TAC 2016-17 Reno Bighorns MVP from the Sacramento Kings The Nevada Sagebrush editor-in-chief 2013-15 Associated Collegiate Press 2015 Four-year Non-daily Newspaper Pacemaker honoree University of Nevada, Reno College of Business Dean's List honoree (5x) from 2011-2015 Nevada Press Association award for Best Sports Column – Community in 2015 Education
Read Chris's ProfileAsk Chris about this guide:
