It has been a rocky road for Las Vegas casinos over the course of the past year, and things don’t seem to be getting any better any time soon. Recently, it’s been reported that gambling revenue in Las Vegas has been on the decline for two months in a row, now.
A 7.7% Decline Since 2017
According to statistics released by the Nevada Gaming Control Board, casinos in the City of Sin took in $913 million in August 2018 – which is a 7.7% drop from the same time last year. It is interesting to note that revenue has delinked in both August and July – when the World Series of Poker was hosted. The tournament brings in thousands of players around the world, but the event still wasn’t enough to boost the profits of Las Vegas Casinos.
There are some interesting arguments as to why Las Vegas gaming revenues are dropping. Some say that an increase in paid parking fees has deterred people from visiting casinos on the strip. Others say that casinos are using nickel and dime tactics that present players with worse game odds, which is why fewer players are choosing to spend their money at Las Vegas casinos.
LV Casino Stocks Could Be A Bad Bet
As a result of the declining revenues on the Las Vegas Strip, finance experts are advising investors against spending their money on casino stocks. Las Vegas Sands has seen its stock price decline over 13% in the past six months while Wynn’s price as dropped an astounding 26%.
The problem doesn’t seem to be exclusive to Las Vegas, however. Wynn’s properties in Macau have also seen disappointing profits, and it has left investors wondering how a casino operator can lose value even after it has expanded into the world’s newest and hottest gaming destination.
There could be number of reasons why gambling revenue is on the decline in Las Vegas, but no one can say for sure at the moment. All that we know right now is that this may not be the best time to invest in casino stocks, especially for companies that have a primary presence in Las Vegas.
If you’re thinking of spending investment money this way, then it would be a good idea to look outside of Sin City. Many casinos in New Jersey and Pennsylvania are sure to see a huge increase in profits over the next couple of months, due to the launch of legalized sports betting. In fact, Atlantic City has already raked in millions of dollars in sports wagers. So companies like Harrah’s and Borgata, which operate sports betting in legal jurisdictions may be the best option for investors at the moment.