Strength Showcased in Local Casinos and Digital Gaming at Bank of America Meeting
In the bustling city of New York, the 15th annual Bank of America 2025 Gaming, Lodging & Leisure Conference took place, bringing together some of the biggest names in the industry. Among the management teams present were Penn Entertainment, Caesars Entertainment, MGM Resorts International, DraftKings, and BetMGM.
According to B of A analyst Shaun Kelley, regional operators view the regional consumer as healthy, with the improvement in unrated play continuing into the third quarter. This optimistic outlook could potentially lead to less new supply in 2026.
Penn Entertainment, for one, is investing in growth-capital expenditures, including their recently opened land-based casino in Joliet and other ongoing projects. Early trends for the Joliet casino are encouraging, with more new customers visiting than anticipated. The company is also focusing on enhancing the user experience through ESPN Bet's Fan Center integration.
DraftKings, another digital company, is confident in its products going into the NFL season. The company is also aiming to increase casino-first play and sees opportunities for fixed cost control through the deployment of AI tools. In igaming, operators continue to see above-market growth, with DraftKings noting an opportunity to narrow the gap between its strong table-game share and its current slot share.
Caesars, too, is optimistic about the future. Caesars management is confident in their product, offering 175 markets for every NFL game this season compared to 50 last season. The company is also focusing on improving the value messaging for Las Vegas, where visitation has been impacted by weak drive-in customers from neighboring states, the Spirit Airlines bankruptcy, and weak Canadian and overseas travel.
BetMGM has also made improvements to their app, allowing more focus on customers and personalization. The company aims to achieve 30% EBITDA margins, but reaching the goal might take longer than initially expected. However, Week One of college football was the highest revenue-generating week for BetMGM this year, indicating a promising start.
In addition, BetMGM refined their sports strategy to focus on the premium mass segment earlier this year. Caesars is also exploring optionality for digital, understanding the importance of the companywide rewards program for an omnichannel approach.
Hyatt Hotels Corporation was also present at the conference, with a focus on its Alila brand and the launch of the "A World Awaits" campaign. Other companies' management team presentations or attendance at this specific conference were not detailed in the provided results.
MGM and Caesars are also focusing on improving the value messaging for Las Vegas, aiming to attract more visitors despite the current challenges. The regional consumer's recent improvement in unrated play is a promising sign for the industry, with 2026 potentially seeing less new supply, according to Kelley.
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