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Are US gambling stocks in for a sharp correction as gambling mecca Las Vegas continues to stumble through a slower-than-expected summer?

A new report from the Las Vegas Convention & Visitors Authority (LVCVA) showed an 11.3% decline in June compared to 2024. Hotel occupancy also dropped 6.5% and several Las Vegas Strip locations are starting to offer significant discounts on rooms.

It’s not all bad for Vegas casinos, however, as those focused on locals performed well in Q2 as did high-end brands like Wynn.

Caesars Entertainment, MGM Resorts Hit By Waning Demand in Vegas

According to several reports, demand for hotel rooms in Vegas began to soften in April.

It’s unclear exactly what’s causing the drop. Still, several factors are worth considering, including economic uncertainty (particularly related to concerns over tariffs), a sparse convention schedule, fewer international visitors, and high prices in Vegas.

On Tuesday, Caesars Entertainment (Nasdaq: CZR) released its second quarter earnings report that showcased a 3.7% drop in Las Vegas revenue. It was a different story, however, for Caesars Digital, which experienced a notable uptick.

CEO Tom Reeg referenced the softer market demand in Vegas but pointed to strong growth in other markets, including Caesars’ Virginia and New Orleans operations.

Meanwhile, MGM Resorts International (NYSE: MGM) experienced a similar 4% decline in its second quarter.

Representatives from both MGM and Caesars expect stronger demand in the second half of 2025, driven by several significant trade shows and conventions, as well as music acts.

Combined, MGM and Caesars operate 17 hotels on Las Vegas Boulevard. At the time this article was published, CZR was down roughly 20.17% since the start of the year, while MGM was up 5.19% over the same period.

Boyd Gaming Bucks the Trend

There was one notable gaming brand in Vegas that didn’t experience a significant decline in Q2.

Boyd Gaming Corporation (NYSE: BYD), which operates 10 different casinos in Las Vegas, beat analysts’ expectations and experienced a roughly 7% increase in revenue in Q2.

Notably, Boyd operates several “locals” casinos, including the Gold Coast, Sam’s Town, and Suncoast, where demand has been resilient. The locals division of Boyd experienced the most substantial quarterly growth in nearly two years.

In a conference call with investors, Boyd CEO Keith Smith explained: “Growth in play among our local guests more than offset softness in play for our out-of-town customers. While the Las Vegas Strip has recently seen softer demand trends, there are signs of continued strength in the local economy.”

Boyd didn’t escape the quarter completely unscathed, however, as revenue from downtown casinos was down 4%. The decrease was likely due to a decrease in out-of-town visitors. Boyd stock is up 17% from the start of the year.

The company’s stock received a significant boost earlier this month when it announced the sale of its FanDuel shares.

Goldman Sachs Gives Buy Rating to Wynn, Caesars 

Wall Street analysts at Goldman Sachs posted a positive report about Caesars and Wynn Resorts (Nasdaq: WYNN) earlier this month.

Wynn Resorts does not report Q2 earnings until Aug. 7, but several pundits are expecting a more resilient performance from the luxury casino brand in Las Vegas (not to mention Macau).

Meanwhile, Caesars was rated as a buy with a price target of $36 per share. CZR was valued at $29 at the time of the report, but it has since become significantly cheaper and is now trading around $26 per share at the time this article was published. The analyst cited a potentially strong 2026 as part of the reason for the buy rating.
The Goldman Sachs report was less kind to MGM Resorts, but there are some differing opinions on the value of that stock.

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