Online casinos growth remains at the forefront of the gambling industry, especially during challenging times for physical casinos. Tough year-over-year comparisons and seasonal fluctuations are forecasted to result in a ‘choppy summer’ for Las Vegas. This insight comes from Truist Securities analyst Barry Jonas, who engaged with multiple Las Vegas-based casino operators.
While local casinos report stable and solid trends, they note a decline in activity among low-end customers. Regional casinos are experiencing strong business, possibly due to consumers opting for closer venues over traveling to Las Vegas. The appeal of convenient gaming options is corroborated by industry players like Legal Sports Report.
Online Casinos Growth Brings Hope in Fall
Industry insiders project month-by-month improvements beginning in September, anticipating a resurgence in growth in the fourth quarter. Despite seasonal challenges, there’s optimism for a comeback as the year progresses. Manufacturing companies, especially Light & Wonder, are seeing improvements post-tariff scares. Notably, both BetMGM and Caesars Sportsbook have confirmed they will not impose service charges on Illinois customers.
Jonas met with executives from top-tier companies like Boyd Gaming, Caesars Entertainment, MGM Resorts, Station Casinos, Golden Entertainment, The Venetian, and Wynn Resorts, offering insights into their summer expectations. While Las Vegas Sands no longer operates domestically, Jonas included it in his discussions.
Room Rates and Promotional Strategies
Room rates in the Las Vegas market were weaker in the second quarter but showed some improvement in July. Executives brace for a shift in the Jewish High Holy Days affecting third-quarter numbers. Despite this, overall hotel bookings are on the rise for autumn and beyond, with the 2026 convention calendar already looking promising.
The Las Vegas Convention Center’s billion-dollar refit will be ready for the Con-Agg Expo in 2026, attracting 100,000 attendees. This event is significant for the Las Vegas Convention & Visitors Authority, which cites a record number of scheduled meetings in 2026.
The luxury segment in Las Vegas, which accounts for a substantial portion of the business, shows signs of slight depression. Conversely, regional casinos report returns trending four percent higher in May, with cash transactions significantly up, according to Everi measurements.
In adapting to tariffs, manufacturers have altered their supply chains, some moving operations offshore to countries like Mexico. This strategic shift aids in mitigating costs and maintaining normal product sales trends.
