NA Snowstorms Significantly Impact Gambling Revenue, Experts Reveal
Impact of Snowstorms on North American Casinos
Recent severe snowstorms across much of North America have visibly affected the business performance of land-based casinos, as detailed by analysts from prominent financial institutions. The harsh weather has resulted in decreased visitor numbers and reduced revenue for many casino operators.
Jefferies Equity Research Forecasts Decline in Casino Revenues
David Katz, an analyst at Jefferies Equity Research, highlighted that the adverse weather conditions are a primary factor behind recent underperformance in casino earnings. Katz further pointed out that ongoing competitive pressures remain the main challenge for land-based gaming establishments. He warned that first-quarter 2026 revenue forecasts might be revised downward due to the snowstorms.
In January, twelve states were under federal emergency declarations because of the storms, seven of which host casino operations: Indiana, Kentucky, Louisiana, Maryland, Mississippi, Virginia, and West Virginia. Katz estimated that if casino visitation dropped to 65% of usual levels—assuming 40% of gambling occurs on weekends—it could lead to a 3.1% decrease in revenue.
Areas hit hardest by the storms may have experienced visitor numbers falling to just 35% of normal, translating into a potential 5.7% reduction in revenues. For context, New York’s video gaming properties experienced only a minor increase of 1%, despite not being under an emergency declaration.
Despite these challenges, Katz expressed confidence in companies such as Boyd Gaming, Churchill Downs, and Station Casinos, citing their strong leadership and promising upcoming developments.
Katz also noted that the impact of weather extends beyond physical casinos, with online gambling (iGaming) expected to attract some players away. He mentioned that iGaming could soon be introduced in Virginia and Maine, supported by recent legislative progress in Virginia aimed at legalizing online casino gaming.
J.P. Morgan Sees Revenue Growth Despite Fewer Visitors
Daniel Politzer, an analyst from J.P. Morgan, observed that brick-and-mortar casinos saw a 5.4% decline in visitors in January. However, he anticipates a 2% increase in gaming revenue despite the lower foot traffic.
Politzer noted that this revenue growth exceeded expectations, considering the adverse weather conditions. He also mentioned that January 2026 included an additional weekend day and followed a challenging day on January 25, which balanced the year-over-year comparison under an adjusted basis.
