October 12, 2012 08:20 ET
Gaming Revenues in Nevada Decline for the Third Time in Four Months
The Paragon Report Provides Stock Research on MGM Resorts and Caesars Entertainment
NEW YORK, NY--(Marketwire - Oct 12, 2012) - After an impressive start to the year casino stocks have struggled as global economic growth concerns have seen gaming revenues in Macau and Las Vegas fall. Recent reports have showed that Macau gaming revenues grew at a slower-than-expected rate in September and casino revenues in Nevada have declined 3.11 percent in the month of August. The Paragon Report examines investing opportunities in the Resorts & Casinos Industry and provides equity research on MGM Resorts International (NYSE : MGM) and Caesars Entertainment Corp. (NASDAQ : CZR).
The decline in August was the third in the last four months that gaming revenues had declined on the Las Vegas Strip. Approximately 50 percent of gaming revenues in Nevada come from the 41 casinos on the Strip.
"While the majority of Las Vegas indicators have improved in 2012 (visitation, average daily room rates, occupied room nights, etc.), we continue to see consumers slowly stepping away from the slot machines," Macquarie Securities gaming analyst Chad Beynon said. "The Las Vegas visitor has significantly changed its spending patterns from gaming to nongaming post-recession, with casino only accounting for roughly 40 percent of (the) wallet share on the Las Vegas Strip."
MGM Resorts International operates a portfolio of destination resort brands, including Bellagio, MGM Grand, Mandalay Bay and The Mirage. The company is scheduled to release their financial results for the third quarter of 2012 before the market opens on Wednesday, October 31, 2012. MGM recently announced that Lorenzo Creighton has rejoined the company.
Caesars Entertainment Corp. is the world's most geographically diversified casino-entertainment company. Since its beginning in Reno, Nevada, more than 74 years ago, Caesars has grown through development of new resorts, expansions and acquisitions and now operates casinos on four continents. The company recently announced that it plans to open a luxury hotel in India.
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