Casino Stocks Trend Downward Year Over Year
Inflation continues to ravage the US economy. Several casino stocks are down over 50% year-over-year. However, commercial casinos across the U.S. had their best April ever.
Derek Stevens, owner of three Las Vegas casino resorts, says his business is suffering. Most significant percentage decline is at bars, slot machines and table games. Gas prices are up 30% to 40%. Hard Rock International CEO Jim Allen says that the company is private and not subject to quarterly earnings calls.
DraftKings CEO Jason Robins said in May that the company is seeing no impact from inflation. Jefferies gaming analyst David Katz met with management teams in Las Vegas. Several operators say business levels are very strong in Q2 and Q3.
Casino stocks are down year-over-year. DraftKings might be right. Sports betting and online casino gaming are still considered amenities customers have to pay for.