Low Interest in Las Vegas Strip, According to Deutsche Bank Analyst's Perspective
Commercial casinos in Las Vegas, Nevada, are showing signs of a halt to a multi-month revenue decline, but overall financial performance varies among operators. The latest findings were made known by Deutsche Bank analyst Steven Pizzella in a July 21 investor note.
Current Sentiment and Financial Performance
Las Vegas casinos ended a four-month skid in total gaming revenue in June 2025, with gaming win revenue on the Strip increasing by 0.88% year-over-year to $765.2 million. This suggests some recovery or stabilization in casino gambling after a period of decline. However, the fiscal year (July 2024-June 2025) gaming win revenue on the Strip was still down 3% compared to the previous year.
The Downtown and North Las Vegas markets saw stronger growth, with Downtown gaming revenue rising by 10.48% year-over-year for June 2025.
Specific Casino Operators
While the sources do not provide specific recent results for Boyd Gaming, Caesars Entertainment, and Penn Entertainment directly for Las Vegas, the overall Las Vegas commercial casino market trends apply to their operations as major casino operators. Publicly available sector data show significant increases in net revenue and adjusted property EBITDA driven by strong market conditions.
Impact of Digital Gambling
Digital gambling (including online sports betting and iGaming) is expanding rapidly in the U.S., including Nevada, and it has a dual effect on physical casino revenues. For May 2025, online gaming revenue grew 27.5% year-over-year, with iGaming revenue up 33%, and online sports betting revenue increasing 21.4% nationally. While land-based gaming revenue also grew 4.8% in May, digital gambling's faster growth rate may pose a transformational impact on traditional casino business models.
Nevada itself reported a slight revenue decline (-2.2%) in combined commercial gaming revenue through May 2025, potentially reflecting digital cannibalization or shifts in player preferences. Many brick-and-mortar casino operators, including Boyd, Caesars, and Penn, have invested in or launched online platforms, seeking to leverage digital gambling to offset or augment in-person gaming revenues.
Outlook
The outlook for Las Vegas casinos remains cautiously optimistic, with improvements in monthly gaming revenue but ongoing challenges in the broader annual performance. The Downtown and off-Strip areas appear to outperform the main Strip, possibly signaling shifts in player habits. Digital gambling is rapidly growing and significantly affecting revenue patterns, contributing strong online revenue growth but also prompting revenue challenges or shifts for land-based casinos.
This synthesis is based on recent industry revenue reports, Nevada Gaming Control Board data, American Gaming Association analysis, and financial disclosures from major casino companies. The stability in regional gambling revenue is more debated among investors, with some attributing it to promotions.
Elsewhere, Macau experienced a June surge of gambling revenue, up 19 percent. The easing of tensions between China and the United States is hoped for, as it could add to a second half of 2022 with easier revenue comparisons in Macau. Investor sentiment for digital gambling remains bullish, with Sportradar and Genius Sports drawing more interest, particularly from long-term oriented investors.
- The stabilization or recovery in casino gambling in Las Vegas, Nevada, as showcased by the increase in gaming win revenue on the Strip, signifies a potential revival for casino-and-gambling businesses situated in Las-vegas.
- The growth in digital gambling, including online sports betting and iGaming, is progressively affecting the financial landscape of traditional casino operators in Las-vegas, such as Boyd Gaming, Caesars Entertainment, and Penn Entertainment.
