August Maintains Sluggish Casino Attendance in the United States

Steady Decline in Casino Visits Continues Through August

In the United States, the casino industry continues to experience low attendance, with August marking another challenging period. Despite an improving job market, the number of visitors to casinos fell by 5.4% compared to last month and remains down 17.5% from levels seen before the pandemic, according to analysis from Jefferies Equity Research and expert David Katz.

Regional Casinos Expected to See Growth

While attendance didn’t drop sharply in August, it stayed consistent with earlier forecasts and trends observed throughout the year. In fact, the decline seen in July was steeper than the gradual pattern in August. Importantly, a decrease in visitors doesn’t necessarily translate to lower revenues, as gross gaming revenue has been gradually improving since late spring.

Katz highlighted specific states as key contributors to positive industry outcomes. New casino openings such as Churchill Downs’ The Rose in Virginia and Penn Entertainment’s Hollywood Joliet have been attractive to visitors and are expected to bolster overall performance.

For instance, Pennsylvania showed strong growth with an 18.8% increase in revenue compared to 2019 figures. Conversely, states like Illinois and New Jersey faced notable declines during the same period.

“The monthly results illustrate the unpredictable journey towards normalizing casino traffic after the pandemic, compounded by increased competition and renovations in certain areas,” Katz noted.

Optimism Despite Current Challenges; Recovery Seen Ahead

Katz also emphasized that Las Vegas and Nevada should not be the sole reference points for the entire country’s casino health. Instead, regional gambling markets appear poised for ongoing improvement even as Las Vegas shows signs of stagnation.

The trend is expected to continue until the final quarter of the year, when stronger recovery signs may emerge in Las Vegas. Though the current data paints a challenging picture, industry experts remain hopeful that the downturn is temporary and a brighter phase is imminent.