Las Vegas casino operators miss Q3 targets, and other gaming news
A trio of prominent Las Vegas casino operators — Caesars Entertainment, MGM Resorts International and Wynn Resorts — fell short of financial analysts’ expectations in the third quarter of 2024. It was a somewhat predictable outcome, given the summer-long trend of declining monthly gaming revenue on the Strip.
Reno-based Caesars Entertainment missed revenue estimates by 1.5 percent, reporting roughly $2.87 billion in net revenue for the three months of July, August and September. More than $1.06 billion of that revenue was generated by the company’s Las Vegas properties, which was down 1.3 percent from the same period in 2023.
MGM Resorts reported $4.18 billion in net revenue for the quarter, with $2.13 billion of that figure coming from Las Vegas. Compared to 2023, Las Vegas net revenue reported by the company was up by 1.3 percent.
Revenue figures for MGM were in line with market analysts’ estimates for the quarter, but missed on other financial metrics, including earnings per share and EBITDA (earnings before interest, taxes, depreciation and amortization).
In a press release, MGM said the Las Vegas results were due “primarily to an increase in non-gaming revenue, partially offset by a decrease in casino revenue.”
Wynn Resorts, which reported its quarterly earnings Monday, missed revenue estimates by 2.4 percent. The company reported $1.67 billion in net revenue for the three-month period, a year-over-year increase of 1.3 percent.
Revenue generated by Wynn’s Las Vegas operations declined 1.9 percent to $607.2 million.
Collectively, the three publicly traded companies operate 19 casinos and five nongaming hotels on or near the Las Vegas Strip corridor.
The following is a roundup of gaming and casino news from Las Vegas and elsewhere.
Analysts watch for slowing growth in Vegas
In the midst of third-quarter earnings call season, some Wall Street analysts suggest investors watch financial returns from the Strip with some caution. Chad Beynon, a senior analyst at Macquarie, said the destination’s gaming revenue and earnings reports from publicly traded gaming companies show a slowdown — though they face tough year-over-year comparisons given the major citywide events held in late 2023 and early 2024.
“We remain positive on the non-gaming outlook in Vegas given strong group travel and events calendar, but we are becoming more cautious on slowing leisure travel demand, which could lead to a more competitive promotional environment and hurt Vegas margins,” Beynon wrote in the Oct. 29 research note. “In addition, comps in 4Q and 1Q are becoming increasingly difficult as we lap F1 and Super Bowl, respectively.”
Horseshoe-branded online casino goes live in three new markets
Caesars Entertainment launched Horseshoe Online Casino in three new North American markets last week. On Friday, Caesars’ Horseshoe-branded internet casino product went live in Ontario, just days after debuting in West Virginia and Pennsylvania.
Online gamblers in Michigan were introduced to the Horseshoe online casino in early October. The brand is waiting on regulatory approval in New Jersey.
Matt Sunderland, senior vice president and chief iGaming officer for Caesars Digital, said the Horseshoe brand is “anchored by a promise to put the player first.”
“A brand with such a storied past deserves an online equivalent that pays respect to the legacy it has established in gaming, and that is what we’ve created with Horseshoe Online Casino,” Sunderland said in a press release.