U.S.-based Telsey Advisory Group said in May that U.S.-regional gaming sales were still declining but showed signs of improvement.
"The GGR across 22 reporting states fell 0.4%, preventing a series of steep declines at the start of the year," the research house said in a report on Wednesday.
"The improvement in May has made our Q214 earnings outlook more comfortable," it added.
Telsey said the U.S. regional gaming trend is unlikely to pick up in the long run.
"While some of the recent positive moves in the stock may be attributed to better-than-expected trends on a quarterly basis, we are sitting on the sidelines here with no sign of a broad or sustainable recovery in the space," the report said.
Credit rating agency Moody's downgraded the U.S. gaming industry outlook from "stable" to "negative."
"The negative outlook reflects the recent decline in comparable monthly gaming revenue in most jurisdictions over the past year and a half, as well as fixed revenue generated outside of Nevada prior to that," Moody's said in a report published this week.
Telsey sees casino closures underway in Atlantic City. "While it's taking longer than expected, we're finally seeing supply shortages in the oversaturated/slow Atlantic City market," Telsey said.
Caesars Entertainment announced in late August that it was closing its Showboat casino. Level AC, which filed for bankruptcy protection for the second time on June 19, said it could close by the end of the summer if it could not find a buyer.
"Caesars has been rumoured to be interested in buying Revl through one of the better-capitalized companies, and compared to Showboat, they've provided a much newer facility at the northern end of the boardwalk," Telsey said. "We see all of this as the right size for the Atlantic City market."
BY: 슬롯사이트 순위