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Why Casino Stocks Like Caesars Are Higher Today

By Rhian Hunt – Jul 29, 2020 at 5:20PM

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Nevada Gaming Board figures for June are down year over year but better than expected.

Multiple casino company stocks are up today following a report on June revenues from the Nevada Gaming Control Board, which revealed the results of the first month of resumed Las Vegas operations following the full COVID-19 shutdown earlier in the year. Caesars Entertainment (CZR) was a major gainer, with its shares bid up +10.74% at market close.

According to the Gaming Board's report, casinos in Nevada won $1.04 billion last year in June 2019. The figure dropped -45.6% this year, with the Silver State's casinos raking in a June total of $566.8 million. Those casinos on the Las Vegas Strip fared the worst, seeing winnings plummet -61.4%, while downtown Vegas gaming establishments experienced a -55% plunge.

An ace and hundred dollar bills on a gaming table.

Image source: Getty Images

Casinos in Reno, Nevada, and other Washoe County locations lost far fewer winnings, with just a -6.84% decline in June winnings year over year. Elko County, including Wendover, registered a -2.14% slump in winnings, while the take in the Carson Valley area hardly suffered at all with a -1.73% change. Fiscal-year gaming win is down -21.7% overall.

Caesars wasn't the only casino operator to gain following the report. MGM Resorts (MGM 2.18%) gained +4.5% today, just a day after it saw a +5% stock market jump on news of a fresh stimulus package moving ahead. Boyd Gaming (BYD 1.85%) popped +10.99%, Wynn Resorts (WYNN) ended the day up +2.62%, and Red Rock Resorts (RRR 3.11%) hit the jackpot with +8.82% gains, among others. There was no analyst consensus on June winnings, but the overall take of slightly more than 50% of June 2019's figure seemed to strike investors as better-than-anticipated results for the first month of relaunched operations.

Rhian Hunt has no position in any of the stocks mentioned. The Motley Fool recommends Boyd Gaming and recommends the following options: short September 2020 $26 calls on Boyd Gaming. The Motley Fool has a disclosure policy.

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