U.S. casino visitation falls in August but revenues hold steady, according to new report | Yogonet International
Summary
Jefferies Equity Research reports that foot traffic at US casinos declined in August — visitation fell 5.4% year-on-year and remained 17.5% below August 2019 levels. July’s sharp 10.1% drop is considered an outlier rather than a sustained trend. Despite fewer visitors, gross gaming revenue has held up as gamblers spend more per visit and operators deliver operational improvements. Regional markets are outperforming Las Vegas in the near term: Pennsylvania has surpassed 2019 visitation, Illinois and New Jersey saw larger declines, and Black Hawk recorded roughly a 5% rise (partly influenced by Monarch Casino Resorts’ 2022 property opening). Jefferies highlights Penn Entertainment and Churchill Downs as well positioned amid a post-pandemic adjustment where visitation stabilises below pre-COVID levels but revenue is supported by higher-yield activity and new openings.
Key Points
- August visitation down 5.4% year-on-year and 17.5% below August 2019.
- July’s 10.1% fall is treated as an anomaly, not a new trend.
- Gross gaming revenue remains resilient because individual spend per visit has risen and operators have improved efficiency.
- Regional markets (for example Pennsylvania and Black Hawk) are currently stronger than the Las Vegas Strip.
- Penn Entertainment and Churchill Downs flagged as beneficiaries due to redevelopments and new property openings.
- The sector is in a post-pandemic adjustment: lower footfall but higher-value activity supporting revenues.
Context and Relevance
This note is relevant to casino operators, investors and suppliers tracking where growth and risk lie in US gaming. It underlines a continuing shift towards higher-yield customers and the growing importance of regional markets and targeted capex. For investors, the data helps identify operators likely to benefit from redevelopments and expansions; for Las Vegas watchers, it signals muted near-term expectations for the Strip until late 2025 when group activity picks up.
Why should I read this?
Short and blunt: fewer people are visiting casinos, but those who do are spending more — so revenues aren’t collapsing. If you work in gaming, invest in operators or sell services to casinos, this saves you reading the full Jefferies note — we’ve pulled out the bits that actually matter.