As the economy recovers, people are bound to become more risk tolerant and Las Vegas seems to be one place to release all that pent up energy. Nevada gaming revenues are rising, which could be a boon for the gaming exchange traded fund (ETF).
Nevada gaming revenues notched their first gain in almost two years back in November, with revenues up 4% for the state and 8.3% for the Las Vegas Strip, reports Jeanine Poggi for TheStreet. November gaming numbers revealed revenues were up 19% on the Boulder Strip and 21% in North Las Vegas.
This is good news for companies like Boyd Gaming (NYSE: BYD), Las Vegas Sands (NYSE: LVS), Wynn Resorts (NASDAQ: WYNN) and MGM Mirage (NYSE: MGM) that rake in a majority of their revenue from Nevada. Goldman Sachs Group (NYSE: GS) even upgraded MGM to buy from neutral on the assumption of Las Vegas becoming “less bad” over the next few quarters.
However, Atlantic City saw gaming revenue flop 9.9% in December, and other gaming centers in Illinois and Missouri both saw decreased revenue of 5.1% and 1.6%, respectively, in the same month.
For more information on gaming, visit our leisure & entertainment category.
- Market Vectors Gaming (NYSEArca: BJK): Wynn is 6.1%; Sands is 5.7%; MGM is 2.3%
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.