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Gaming and non-gaming traffic in Las Vegas looked strong according to Bank of America analysts Shaun Kelley and Vincent Zahn, who recently spent three days there.Restaurants were doing especially well, though retail looked weak. Special events like HR conventions, NHL awards, kept the Las Vegas Strip busy and coming months also look promising.
Kelly and Zahn give us the breakdown:
- Though physical properties in local markets are doing surprisingly well, the promotional environment is challenging. There is almost no customer loyalty and any improvement would hinge on efficiency rather than changes in the consumer.
- Wynn Resorts’ Cosmo and Caesar’s gained from better pricing, not better occupancy.
- High end Baccarat players have supposedly cooled off in June.
- Boyd Gaming Corp. faces downside risk from the Las Vegas locals market and regional markets like Atlantic City and Louisiana.
- International Game Tech (IGT) (a maker of machines) is setting its new offerings (like the Wheel of Fortune Triple Spin and centre Stage) all over the place.
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