On the other hand, market observers rightfully argue that employment data don’t jibe with traditional economic contraction scenarios. The textbook definition of a recession is two consecutive quarters of declining GDP data - a condition the US meets. Regional Casinos Could Be Durable Earlier in Recessionĭue in large part to political spin, there’s currently an unprecedented debate regarding whether or not the US economy is in a recession. That’s because no major hurricanes were affecting South casinos this year, and the COVID-19 Omicron variant outbreak of December 2021 is unlikely to repeat this year. The analyst added that comparables should be easier for operators to manage by the end of 2022. recession, regional demand trends seem to be lagging the broader economy,” wrote Engel. While we acknowledge GGR is bound to eventually decline in a U.S. The core customer base for many regional gaming venues usually make day trips to those properties and usually drives to get there, making them sensitive to gas costs.Įven amid current macro pressures, we still model stable GGR through YE2022. In a note to clients today, Roth Capital analyst Edward Engel said that modest improvement is likely attributable to a pullback in gas prices. GGR at regional casinos declined 1% last month compared with a 2% drop in June.
An analyst says lower gas prices are helpful to regional casino operators. Century Casinos co-CEO Peter Hoetzinger, left, and other executives ring the bell at the Nasdaq market site in 2020. Those declines provided some support to regional casinos’ July gross gaming revenue (GGR) figures.
The national average gas price is $3.829 per gallon, according to AAA, well above levels seen in late 2020, but off the highs set earlier this year. Financial, Gaming Business, Mergers and Acquisitions.
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