The Las Vegas Strip is fading all those concerns of a consumer slowdown

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The early report out of the casino industry's heavyweight G2E Global Gaming Expo is that trends in Las Vegas are not showing any major signs of slowing down, despite the macroeconomic backdrop.

Wells Fargo analyst Daniel Politzer said meetings with management from Caesars Entertainment (NASDAQ:CZR) at G2E indicated that Las Vegas seems to be getting better by the day. Notably, October is on pace to be the casino company's best month ever. Politzer said that the positive read from Caesars (CZR), combined with MGM Resorts International's (NYSE:MGM) recent commentary on November being a record-setter in Las Vegas, is a strong signal that the setup for Q4 is attractive for casino operators, despite negative headlines around the recent cyberattacks and ongoing labor battles with the culinary and bartender unions. On the digital side of the business, the sports betting numbers out of Las Vegas and Nevada are still strong, despite the widespread adoption of legalized sports betting.

The G2E casino updates this week also included more buzz over the long-awaited Fontainebleau Las Vegas luxury hotel that is set to open on December 13. The 67-story property is in its final stages of construction, and will still need to land regulatory approvals from the Gaming Control Board approval before its official opening. The huge $3.7B project on the north end of the Las Vegas Strip was first announced in 2005, but was disrupted by the economic collapse in 2008-2009 and the original owners declared bankruptcy. Carl Icahn and Marriott International (MAR) toyed with the project separately, without restarting construction. The property was then reacquired by Fontainebleau Miami Beach owner Fontainebleau Development, and Koch Real Estate Investments took over the project in early 2021 to help push it to finish line with a fresh round of financing late last year.

Looking ahead, Las Vegas will also see F1 Formula Racing hit town in November and the Super Bowl be the center of attention of the sports world in early February. Meanwhile, Sphere Entertainment's (NYSE:SPHR) Las Vegas Sphere attraction has been a traffic driver and social media sensation that is expected to not slow down anytime soon.

Sector watch: The casino and gaming stocks with the highest Seeking Alpha Quant Ratings are Caesars Entertainment (CZR), Evolution AB (OTCPK:EVVTY), PlayAGS (AGS), Bragg Gaming Group (BRAG), and Rush Street Interactive (RSI).