Gamblers locally contributing to Q2's financial upturn, as per analyst's assertion
In the bustling gambling hub of Las Vegas, the second quarter of 2025 is shaping up to be a period of contrasting fortunes for the city's locals casinos.
Strong Performance Expected for Boyd Gaming
Boyd Gaming, a major player in the locals market, has reported Q1 2025 earnings that exceeded analyst expectations. With solid revenue and profit margins, a market cap of $6.63 billion, and earnings per share (EPS) of 7.04, the company is demonstrating favorable momentum heading into Q2 [3].
Bally's Corporation Faces Challenges
In contrast, Bally's Corporation (BALY) recently reported a Q2 earnings miss, with weaker than expected casino and resort results. Analysts have downgraded the stock to a Hold rating, signaling concerns about its near-term performance despite the companyβs extensive casino portfolio and ongoing investments in Las Vegas properties [5].
Market Context
Commercial gaming revenues have grown nationally by 7.1% so far in 2025, but specifically in Nevada, revenue declined 3.4% in May compared to the previous year. This trend suggests that while some companies like Boyd Gaming may be positioned to perform well, others like Ballyβs may struggle [1].
Outlook for Q2 2025
Against this backdrop, analysts predict a stable and solid second-quarter earnings for Las Vegas locals casinos. Truist Securities analyst Barry Jonas expects Station Casinos and Boyd Gaming to beat their cash-flow targets by 5% and 4%, respectively [6].
Jonas also predicts potential expansion for Station's new resort, Durango, due to improved financials [7]. On the other hand, Jefferies Equity Research analyst David Katz predicts a "grind-y summer" for Strip operators but favors a strong 4Q and FY26 due to a strong group/entertainment slate [8].
Future Prospects
Operators are pinning their hopes on 2026, with its easier comparisons and return of the Con/Agg expo. Jonas expects a revenue boost of up to $85 million from the rescinding of taxes on tips for Station Casinos [2].
Meanwhile, Katz applauds Boyd's sale of its five percent stake in FanDuel, saying the $1.4 billion exit fee better positions the company to capitalize on growth opportunities or additional capital returns [9].
In conclusion, while the second quarter of 2025 presents a mixed outlook for Las Vegas locals casinos, analysts remain optimistic about the future, particularly for 2026. The resumption of major events and the easing of economic pressures are expected to drive growth in the sector.
References:
- Nevada Gaming Control Board
- Station Casinos
- Boyd Gaming
- Bally's Corporation
- Yahoo Finance
- Truist Securities
- Jefferies Equity Research
- Katz at Jefferies
- Boyd Gaming sells FanDuel stake for $1.4B
Boyd Gaming, owing to its strong Q1 2025 performance with exceeded earnings, is expected to demonstrate a favorable momentum in casino-and-gambling operations during Q2 2025. Meanwhile, Bally's Corporation, after a Q2 earnings miss and analyst downgrades, may face challenges in its casino-and-gambling sector performance in the near term.