The Short Take:
- Combined, six major gaming companies brought in $3.8 billion of revenue from their Vegas operations which is a 4.6% year-over-year decrease
- Out of the six companies in this study, only one, Red Rock Resorts, posted YoY increases in Vegas revenue
- Wynn Resorts was the worst performing company in terms of Vegas revenue in this study, seeing its Las Vegas revenue falling 14.1% YoY
With the third quarter results of the most of the large casino companies now in the rear-view mirror we decided to take a look at how each company performed in Las Vegas. Many of the companies report separate revenue line items for their Vegas operations. Others, like MGM do not, but they do provide revenue per property which we used to produce the Vegas revenue results.
As expected, MGM Resorts (MGM) was the top player in Vegas in terms of net revenue during the third quarter of 2018. MGM’s total net revenue for the nine casinos it operates on the Strip totaled over $1.45 billion. In second place, Caesars Entertainment (CZR) squeezed out $910 million in revenue from its Vegas locations.
Wynn Resorts (WYNN), Red Rock Resorts (RRR) and Las Vegas Sands (LVS) all had very similar total Vegas revenue in the third quarter. Their net revenue was in the upper $300 million range. Boyd Gaming (BYD) brought in almost $268 million through its two Vegas revenue segments: casinos that cater to Las Vegas locals and its downtown Vegas properties.
Here’s an overview of the Las Vegas revenue by company for the third quarter of 2018:
While these revenue numbers seem impressive, all but one of these companies saw year-over-year decreases in its Vegas revenue. Several saw dramatic decreases.
The only company on this list that grew its Vegas revenue was Red Rock Resorts which owns or partially owns 20 casinos in town including the Station casinos. Red Rock’s Las Vegas revenue rose 3.9% year-over-year compared to the third quarter of 2017. Boyd Gaming’s Vegas revenue just missed a YoY breakeven, falling 0.2%.
Las Vegas Sands and Caesars Entertainment saw modest YoY Vegas revenue decreases. Las Vegas Sands’ was down 2.1% YoY while Caesars’ declined 2.4%. MGM Resorts fared worse. Its local properties’ revenue sank 6.5% YoY.
The worst performing company in terms of YoY growth of Vegas revenue was by far Wynn Resorts. Maybe this had something to do with the turmoil that occurred in the executive boardroom with the ouster and public flogging of ex-CEO Steve Wynn, but regardless of the reason the 14.1% YoY decrease in net revenues at the company’s two Vegas resorts was astounding.
Here’s a look at the YoY growth of each companies’ Las Vegas revenue:
All-in-all, the third quarter Las Vegas revenue for these major players was disappointing. Taking in aggregate, all six companies discussed in this article produced about $3.8 billion in Vegas revenue during the quarter. This was a fairly substantial decrease of 4.6% compared to Q3 2017. Here’s to hoping that the fourth quarter results are better for Vegas!