Covid made a crack at burning down the house but it appears that US casinos have fired up again in 2022. 🔥 The Wall Street Journal last week reported that casinos had ‘their best month ever’, with March revenue topping US$5.31 billion. That’s equivalent to the entire sum the US government paid Pfizer for Covid-19 antiviral pills. 💊 Tribal Nations casinos on Native American land, created in part to fund ‘what the government doesn’t’ and which closed nearly 500 casinos during covid, are yet to announce earnings.
Las Vegas casinos have long enjoyed first mover advantage, starting in 1906 with putting their stake in the parched Nevada ground. Since then casino giants, including Caesars (CZR), MGM Resorts, (MGM), Wynn Resorts (WYNN) and Las Vegas Sands (LVS) have played the long (i)game, extending in-person revenue by clipping tickets in sports betting and online gambling. Aka, hedging their bets as people drop baller bets on Tom Brady in person, or wearing loungewear from the comfort of…wherever. 🛌
And it seems there are plenty of coin purses to dip into. 👛 According to Forbes, last year Americans had money to burn, with casinos and gaming mobile apps ringing in record revenue of US$53 billion. Vegas proved they still hold the cards, hitting the jackpot with US$7 billion revenue, and iGaming racking up revenue of US$3.71 billion. Meanwhile, Wynn Resorts and Las Vegas Sands may yet be feeling China’s lockdown pinch in Macau and Singapore, both missing estimates with Wynn’s chips falling 47% in three years, and Sands reporting ‘dismal’ first quarter results.
All bets are off, however, with gambling prohibition likely coming to an end, being legalised in more than half of the US states, and talk of digital players Penn Gaming (PENN) and DraftKings (DKNG) dabbling in bricks ‘n’ mortar in-person experiences. But casinos haven’t yet played their final hand on the Las Vegas Strip. 🃏 On colossal stages, they continue to sweeten the pot with popstar residencies that go on and on and on…, and where the only thing toxic stage left has been people skimming Britney’s income.