A Las Vegas-based game industry analyst predicts record or near-record visits and profitable periods for casino companies through March.
John DeCree, equity analyst at CBRE Equity Research, told investors in a report Tuesday about what he gained from a series of meetings he had with game executives during the Global Game Expo, which he met with more than 20 companies last week.
“Generally speaking, the messages we heard across G2E were more similar,” Deakri wrote. “Despite continued macroeconomic concerns and a significant drop in shares of most casino and gaming companies after (Q2) earnings, the fundamentals across all sectors and verticals remain sound.”
DeCree added that one of the biggest questions and topics throughout the G2E is Las Vegas’ over-income? 카지노사이트
“The consensus seems to think so, but few people can tell how much, if any,” he said. “The demand in Vegas is abundantly clear with sold-out flights, rooms, dinner reservations and concert tickets. Prices for all items continue to rise, and questions remain. At what point does the consumer hesitate? From now until at least March, the group, convention and entertainment schedules are at their peak, so visibility into continued strength remains clear. This year is being prepared as a banner convention year, and 2024 is expected to be even better.”
Earlier this month, Las Vegas Convention and Visitors Council President and CEO Steve Hill said Las Vegas had unprecedented growth potential through mid-February with the opening of 17 special events, conventions or resorts that are supposed to produce between $10 billion and $15 billion for the local economy. Among the major upcoming events are the Formula One Las Vegas Grand Prix on November 18 and the Super Bowl at Allegiant Stadium on February 11, 2024.
“The entertainment schedule receives less attention than the convention calendar, but has become a major driver of unprecedented weekend demand,” Deakri wrote. “Weekend share is at its peak, with major venues such as Allegiant Stadium exceeding initial expectations for visits and new venues such as MSG Spear driving incremental demand. Although Fontainebleau is set to open by the end of the year, there is a clear demand-supply imbalance that must persist for the foreseeable future. Maybe Vegas is making excess profits, but it’s not going to go back to something like 2019 anytime soon.”
Mr. Deakry said he met with Mr. Hill and the management of Sue Kim of Bali, and Genting Berhad, parent company of Caesars Entertainment, Penn Entertainment, Golden Entertainment, Full House Resort and Resorts World Las Vegas.