Casinos and Casino Hotels

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 483 casinos in the US operate facilities that offer gambling activities, such as slot machines, table wagering games, and sports betting. Casino hotels provide short-term lodging and casino activities on-premise. Gambling machines and table wagering games account for the majority of industry revenue. Other sources of revenue include room accommodations, meals, beverages, and other services.

Heavy Regulation

The casino industry is highly regulated at the federal and state level, due to the cash-intensive nature of the business.

Competition from Alternative Forms of Entertainment

Casinos and casino hotels face competition from alternative forms of entertainment and lodging.

Industry size & Structure

The average casino establishment employs about 259 workers and generates about $83 million annually. The average casino hotel establishment employs 770 workers and generates about $259 million annually.

    • The casino industry includes about 276 establishments that generate $17 billion annually and employ 53,000 workers. The casino hotel industry includes about 456 establishments that generate $72 billion annually and employ almost 214,300 workers.
    • Both industries are highly concentrated; the top 50 firms account for 80% of industry revenue.
    • In the US, 24 states offer legalized gambling. The largest US casino markets are Las Vegas, NV, Atlantic City, NJ, and the Chicago IL/IN area.
    • Large firms include Caesars Entertainment, Penn National Gaming, Las Vegas Sands, and Wynn Resorts.
    • Native American gaming operations are owned by sovereign tribes and located on tribal land. In 2019, the tribal gaming industry consisted of 245 tribal nations that operated 522 casinos located in 29 states. Revenue per tribal casino averaged about $66 million.
    • Several large firms have international operations, with a focus in Asian markets. The Chinese territory has become one of the world's biggest gambling markets, with $42.7 billion in revenue, according to the 2020 China Game Industry Report.
                              Industry Forecast
                              Casinos and Casino Hotels Industry Growth
                              Source: Vertical IQ and Inforum

                              Recent Developments

                              Nov 1, 2022 - Casino Revenues Keep Pace with Expenditures
                              • Third-quarter reporting suggests many casino operators’ revenues are keeping up with labor and commodity inflation, according to Casino.org. Firms including Red Rock Resorts and Boyd Gaming turned in promising results as gross gaming revenues (GGR) held up and operating expenditures moderated. Some casino operators report that decreases in visitation and revenue among lower-end demographic gamblers have been offset by steady demand from more affluent clientele.
                              • In September, Nevada casinos posted their 19th consecutive month with revenues over $1 billion, according to the Nevada Gaming Control Board. Gross gaming revenue (GGR) reached more than $1.2 billion in September, up 8% compared to a year earlier. Of 20 monitored gaming markets in Nevada, only three posted year-over-year revenue declines in September. Casinos on the Las Vegas strip led gambling revenue growth with a rise of 8.2% that totaled nearly $693 million. Slot machines on the Strip were the big winner as GGR increased 15% year-over-year; table game revenue was flat. Gambling revenues, particularly on the Las Vegas Strip, have been buoyed by the full return of large-scale conventions, entertainment, and the NFL and college football seasons.
                              • US-based casino firms with operations in the Chinese gambling mecca of Macau may soon have a new competitor, according to The Wall Street Journal. In mid-September, Macau opened the bidding for 10-year gambling licenses. Six existing license holders – including the US-based Las Vegas Sands, Wynn Resorts, and MGM Resorts International – are vying for six available licenses along with a Malaysia-based newcomer, Genting Group. The three US firms have spent lavishly on their operations in Macau since receiving licenses 20 years ago. Macau is keeping its license cap at six but is cutting the duration from 20 years to 10. Industry watchers expect existing license holders are well positioned to renew them, given their extensive investments. However, Genting Group – which owns dozens of casinos in the US, the UK, and Southeast Asia – would bring a loyal stable of VIP gamblers from outside China. Current licenses expire at the end of 2022. Macau’s gambling operations have often struggled amid China’s “zero-COVID” policy.
                              • At the recent East Coast Gaming Congress, casino executives highlighted some hard-learned lessons from the pandemic that turned out to be beneficial for their businesses. Given the health concerns, some casinos never reopened buffets after shutting them down. Some never reopened other loss-generating food operations or used the shutdown to tweak restaurant formats. Some casinos took the downtime to completely restructure operations. Participants also noted that payrolls remain well below per-pandemic levels due to the industry’s challenges to attract and retain workers, especially in housekeeping.
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