The Jefferies Nantucket Consumer Conference was held June 16-17 and participants were largely upbeat. The prevailing sentiments were summarized by Jefferies Equity Research analyst David Katz in a June 18 investor note.
Participating casino companies reported “fundamentally stable trends,” but allowed that comparisons with 2025 were mixed. Those with Las Vegas Strip exposure felt that the market’s weakness had bottomed out. Specifically, MGM Resorts International cited cash-flow growth. Boyd Gaming, however, anticipated continued leisure-traveler softness offset by strength in regional casinos and Las Vegas locals’ play.
Core and unrated players were described as resilient, while easier comparisons were seen ahead for leisure travel. Volumes in Las Vegas were “solid” for Boyd, if not the growth (low single digits) seen at its regional properties. While Boyd leadership was willing to increase leverage to five times cash flow “for the right asset,” share repurchases and capex investments were perceived by Katz as likelier avenues.
Boyd rival Station Casinos was foreseen as experiencing double-digit cash-flow growth in the near future, once past construction-related upheavals. Katz reported that Station “continues to offer the most visible growth profile within the peer set.”
Mergers or acquisitions by Station were seen as low priority, “as management continues to emphasize organic growth, internal development projects, and capital returns.” Although high gas prices have traditionally impacted gambling revenues negatively, Station was insulated, “potentially reflecting a more premium customer mix in the Las Vegas locals market.”
For its part, MGM reported ongoing softness in Las Vegas where low-income customers were concerned, somewhat stabilized by all-inclusive-pricing deals at Excalibur and Luxor. “The high-end Strip customer remains strong and resilient. Overall growth is expected on the Strip in every quarter,” Katz wrote.
MGM brass said they were “evaluating” their non-core non-Las Vegas assets for potential monetization, depending on premium pricing and their standing in their respective markets. Resorts World New York City’s table games were said not to have dented MGM Empire City’s business, with MGM executives looking for as-yet-unbegun Metropolitan Park to have a greater impact.
Overseas, MGM said its $10 billion Osaka megaresort was still at least two years distant, but management was upbeat. They cited the size of the Japanese market and the potential mix of local and tourist demand.
Wynn Resorts reported that it was a victim of its own success: “Strong Las Vegas results in the prior year imply more difficult … comparisons relative to peers.” Encore Boston Harbor was characterized as “a steady performer,” with nearby developments enhancing its potential.
Development of Wynn’s Las Vegas land bank remained under review. Its United Arab Emirates resort was, however, seen as a revenue driver, with the initial gambling product comparable to a new United States casino.
The only manufacturer present in Nantucket was Light & Wonder. It reported stable revenue trends. In particular, “Early returns from the Grover acquisition appear strong, with a successful launch in Indiana.” New York state was seen as the next Grover market, with New Mexico and Alaska perhaps to follow. Also, the Grover platform’s ongoing success was said to be propelled by the coming infusion of Light & Wonder’s Huff ’n Puff series of games.
Gray-market igaming continued to depress results for SciPlay. Flat growth was forecast, with possible relief in the form of regulatory changes in Pennsylvania, Virginia, Texas, and Wisconsin.
Light & Wonder’s ongoing strategy was described as a blend of share buybacks and debt reduction. Mergers or pickups were seen as possible, “particularly within the charitable gaming segment.”
