After taking feedback from investors, Deutsche Bank analyst Steven Pizzella reported, “Sentiment for the Las Vegas Strip remains low, driven by recent visitation data.” He said that cash-flow projections for the third quarter were “materially” below Wall Street’s consensus.
Pizzella made his findings known in a July 21 investor note. He also observed that the new-project pipeline was “showing signs of slowing.”
However, investors were said to be broadly in agreement that regional gambling revenue remained stable for the time being. “More debated is how much is being driven by promotions and will ultimately be flowed through,” Pizzella wrote. Based on Ohio samplings, he found Boyd Gaming to be steady in its promotional outlays, while Caesars Entertainment and Penn Entertainment were spending more.
A bright spot was digital gambling. Investor sentiment “remains bullish,” it was reported, with an accelerated May for online sports betting maintaining steady momentum into June.
Igaming trends were also said to have been consistent, leaping 30 percent per month across April, May, and June. Additionally, sports betting-data providers Sportradar and Genius Sports were drawing more interest, “especially from longer-term oriented investors, primarily attracted to the long-term predictable fixed revenue growth.”
Looking to Macau, Pizzella said he knew the outlook would be bullish. Even then, “the outlook for the remainder of the year was modestly more optimistic than we anticipated.”
A June surge of gambling revenue in Macau, up 19 percent, was credited for the enthusiasm. Pizzella hoped for an easing of tensions between China and the United States. Such would add to a second half of 2025 in which Macanese revenue comparisons will be easier, thanks in part to the absence of any state visits from Chinese President Xi Jinping.
