Buckingham launches coverage on gaming industry; Strip win revenue up 17.3% in May


Started at Buy are Wynn Resorts (WYNN -0.2%), Multimedia Games (MGAM +1.5%), MGM Resorts (MGM), and Melco Crown (MPEL +0.7%).

Initiated at Neutral are Bally Technologies (BYI -0.3%), International Game Technology (IGT -0.1%), Las Vegas Sands (LVS -0.5%), Pinnacle Entertainment (PNK +0.6%), and Scientific Games (SGMS -1.4%).

Underperform: Boyd Gaming (BYD -1.2%).

In other news, Las Vegas Strip win revenue of $592.9M in May rose 17.3% Y/Y according to the Nevada Gaming Control Board. The state's nonrestricted gaming licensees reported total gaming win of $970M in May, up 8.1% from a year ago.

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Comments (3)
  • haleiwahu
    , contributor
    Comments (4009) | Send Message
     
    I hear that most local residents don't gamble very much. So is the income to Vegas about parallel to the amount of people visiting? http://bit.ly/1jUVbj5
    27 Jun 2014, 10:16 AM Reply Like
  • ozzy1
    , contributor
    Comments (10) | Send Message
     
    Actually, vegas residents are chronic gamblers. The proof is in the overwhelming number of "off strip" casinos with station casinos operating the largest and most venues. YOY increase is primarily due to an uptick in the economy, higher room rates and convention attendance.
    27 Jun 2014, 12:09 PM Reply Like
  • Howard Jay Klein
    , contributor
    Comments (872) | Send Message
     
    The latest gaming win spike in Vegas is entirely due to the high hold percentage on baccarat largely from international players. This is a number that can drastically gyrate month over month and is disproportionately impacted by the losses of a handful of huge players relative to the market. More telling is the slot win which is sort of holding its own. Never base investment decisions in gaming on hold percentage spikes. Bet on solid managements operating in good markets with big footprints in underserved Asia. LV Sands, Wynn, MGM and Melco Crown solid as a rock regardless of what happens on the high end in a given month.
    1 Jul 2014, 12:00 PM Reply Like
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