Las Vegas-related gaming stocks rally; Red Rock Resorts leads moves

Gambling stocks bounced back Tuesday after a turbulent multi-day stretch for most domestic and global financial markets that included Monday’s massive slide.

Publicly held casino companies with direct ties to Las Vegas, such as MGM Resorts International, Caesars Entertainment, Wynn Resorts and Boyd Gaming, all posted respectable gains during trading hours Tuesday. Red Rock Resorts, parent company of Station Casinos, was the segment’s biggest mover as its stock value rose more than 6 percent.

Ancillary companies that provide products and services to the gambling industry, such as International Game Technology and Las Vegas-based Light &Wonder Inc., and casino-landlord real estate investment trusts, such as VICI Properties Inc. and Gaming &Leisure Properties Inc., also reported higher stock prices by the end of the trading day.

Gaming industry analysts contacted by the Las Vegas Review-Journal on Monday and Tuesday either declined to directly comment or indicated they were taking a wait-and-see approach. Data provided by some of those analysts show an industry that is fading over the last year.

The single-day rally for gambling stocks is a positive sign for a market segment that has been underperforming of late. While the overall U.S. financial markets have been experiencing record-setting growth for the past 12 months, many casino-related stocks have not followed suit.

Caesars (-38.92 percent), MGM (-23 percent), Wynn (-25.98 percent), Boyd (-18.51 percent), Golden Entertainment (-32.67 percent), Penn Entertainment (-29.67 percent) and Las Vegas Sands Corp. (-33 percent) have all seen their stock values decrease since Aug. 7, 2023. Red Rock Resorts (+19.87 percent) and Bally’s Corp. (+10.25 percent) have bucked the trend among publicly traded casino companies with Las Vegas holdings.

The recent declines in the value of gambling stocks is seemingly at odds with industry data showing continuous increases in gross gaming revenue, particularly on the Las Vegas Strip and downtown Las Vegas.

In June, Nevada casinos reported the highest monthly gambling win total — $15.8 billion — in state history. Visitation to Las Vegas increased nearly 2 percent in June 2024 over the same month last year.

Non-gaming revenue, such as hotel, food and beverage, entertainment and retail, generated by Las Vegas casinos is also on the rise, according to commentary provided by most casino executives during recent quarterly earnings calls.

The domestic stock market’s major three indexes — Dow Jones Industrial Average, Nasdaq Composite and S&P 500 — all responded poorly to a July jobs report, which fueled a three-day decline across the board. Recession fears, uncertainty surrounding the Federal Reserve’s policy pace and mounting concerns of overvalued artificial intelligence investments also contributed to the market’s slide, according to economists.

Monday was particularly brutal for the Dow Jones, dropping 1,034 points. The tech-heavy S&P 500 fell 3 percent Monday, its largest single-day loss since September 2022.

The major indexes bounced back on Tuesday. The S&P 500 climbed 1 percent, the Dow rose 294 points, or 0.8 percent, while the Nasdaq composite gained 1 percent.

The Review-Journal is owned by the Adelson family, including Dr. Miriam Adelson, majority shareholder of Las Vegas Sands Corp., and Las Vegas Sands President and COO Patrick Dumont.

David Danzis can be contacted at ddanzis@reviewjournal.com. Follow David on X at AC_Danzis.