I would think this financial crisis is hurting gambling operations

[djefferis]

Gold I'm not so sure I agree with you here.

Gambling can be defensive and while it's not exactly recession proof, I think that it's fairly recession resistant.

Same thing with travel, vacations, etc.

People still do that shit when the markets are getting hit and the economy is slowing down.

Ultimately- I think you’re correct with the assessment for certain operators - I/E tribal casinos and the apps.

Gaming domestically outside of Vegas is defensive - any loss of vacation dollars will be made up for in locals taking shorter vacations to local properties and short stays. For example - you’ll see a dip in East/midwesterners going to Vegas for a week - but those funds will shift to casinos in their home states/neighboring states.

Where this is likely to hit hard is the international market and names like Wynn with large exposure to Asian markets and Macau for example. Again - these types are pretty resilient - but you’ll see less luxury spending from them and a cut back on trips to the US as the whole trade war continues.

The bottom line is blue collar is going to gamble - but the high end and most profitable players cut back and despite being 20% of the players in a normal US casino - they probably make up 40-50% of the margins as they spend and aren’t afraid to splurge. The good news is Joe Consumer is already getting familiar with higher food prices for example - so casinos will be able to raise prices on dining and lodging and avoid having to take a loss on these to pull in players. Comps will inevitably be cut back and there will be less competitive pressures for all but the most profitable players.

It’s the international market that’s going to determine how bad this becomes for operators.

 

[KVB]

Where this is likely to hit hard is the international market and names like Wynn with large exposure to Asian markets and Macau for example. Again - these types are pretty resilient - but you’ll see less luxury spending from them and a cut back on trips to the US as the whole trade war continues....

...It’s the international market that’s going to determine how bad this becomes for operators.

Yes,

 

[pipe]

I think I talk about the crazy expanding opportunity in the US markets in my intro to the business video.

There is still some wild west, a little bit. The Arizona market is ripe for the taking.

Crazy hard rock bet is allowed in Arizona? Those other books Fanduel Draftkings and other books must hate those fucking Indians with the no touch state of Florida.

 

[JDS]

Crazy hard rock bet is allowed in Arizona? Those other books Fanduel Draftkings and other books must hate those fucking Indians with the no touch state of Florida.

Greedy bastids don’t like it one bit, they will always get the stink eye from me when the moment presents itself.

 

[jjgold]

The price of escorts for an hour nationwide or still an average of about $200 that’s the same from 25 years ago

 

[KingKolzig]

The price of escorts for an hour nationwide or still an average of about $200 that’s the same from 25 years ago

Men and women?

 

[gauchojake]

FADE

 

[petergreww3]

Ultimately- I think you’re correct with the assessment for certain operators - I/E tribal casinos and the apps.

Gaming domestically outside of Vegas is defensive - any loss of vacation dollars will be made up for in locals taking shorter vacations to local properties and short stays. For example - you’ll see a dip in East/midwesterners going to Vegas for a week - but those funds will shift to casinos in their home states/neighboring states.

Where this is likely to hit hard is the international market and names like Wynn with large exposure to Asian markets and Macau for example. Again - these types are pretty resilient - but you’ll see less luxury spending from them and a cut back on trips to the US as the whole trade war continues.

The bottom line is blue collar is going to gamble - but the high end and most profitable players cut back and despite being 20% of the players in a normal US casino - they probably make up 40-50% of the margins as they spend and aren’t afraid to splurge. The good news is Joe Consumer is already getting familiar with higher food prices for example - so casinos will be able to raise prices on dining and lodging and avoid having to take a loss on these to pull in players. Of course, high-end players accustomed to luxury resorts will cut back on their spending, but as you rightly pointed out, there will be demand for local establishments and online gaming, especially if the stakes remain affordable. Personally, I also find that during a crisis, you sometimes want to relax without spending a lot. Personally, I sometimes unwind with online games; for example, I recently read a full review of a good gaming platform and its bonuses. It's a great way to try your luck without leaving home, especially when saving money becomes important. And I agree that it will be important for operators to adapt to the rise of more accessible formats, such as online casinos. Comps will inevitably be cut back and there will be less competitive pressures for all but the most profitable players.

It’s the international market that’s going to determine how bad this becomes for operators.

I think that in an economic downturn, many habits remain, even though people start saving.