Shaun Kelly, a gaming analyst at Bank of America, has high hopes for the gaming market in Las Vegas, predicting that the city will be a global leader by 2024. He believes that the state is currently in a strong position and has the potential to achieve significant growth. Notably, there has been a 5% increase in room rates, which Kelly believes will benefit high-end properties like Super Bowl and Baccarat. He also predicts that EBITDA will either increase slightly or remain steady. Bank of America forecasts a 2% increase in revenue generation for Las Vegas in 2024, compared to a 1% increase in 2023.
However, Kelly is less optimistic about regional gambling in 2023, with the exceptions of Massachusetts, Alaska, Kentucky, and Illinois, where he expects little change. He is confident that new operators will have a positive impact on regional gambling in 2024. In Macau, a 20% growth is anticipated in 2024, with an overall increase of approximately 18% for the year.
As more states legalize wagering, Kelly believes that revenue from gambling will continue to increase. He points to ESPN Bet as a potential major player in the industry, with high expectations for companies like DraftKings, FanDuel, and Caesars in 2025-26. In 2024, Kelly suggests that MGM Resorts may establish dominance.
Kelly also discussed the departure of Entain’s CEO and the intention of the current CEO to take a specific stake in the residuals of BetMGM. There is also the possibility of MGM approving a temporary certification fee for Entain’s technology.
Penn Entertainment is gearing up for the November launch of ESPN Bet, and activist shareholder H.G. Vora, who currently owns an 18.5% interest, will be present. The introduction and success of ESPN Bet have already led to an increase in Penn’s stock price. Additionally, DraftKings is expected to make a significant contribution in the industry this year.
Looking ahead to 2024, it is anticipated that Caesars Entertainment and Red Rock Resorts, along with Durango, will emerge as major players in the gaming industry. Overall, Kelly’s outlook for the gaming market in Las Vegas and beyond is optimistic and filled with potential.