Strip room prices are gradually increasing, an indication that demand is rising, according to a recent price survey and analysis by a gaming industry analyst.
Barry Jonas, chief executive of Atlanta-based Truist Securities, said in a Monday report to investors that after a strong performance in March and a weak April, rates will rise in May and June with most of the increase at Caesars Entertainment Inc.’s properties.
Jonas believes the March performance was largely due to the ConExpo-Con/Ag construction industry trade show that only happens every three years and brought an estimated 140,000 people to Las Vegas.
Strip prices are expected to increase 11 percent in May and 5 percent in June, with Caesars prices up 34 percent in May and 3 percent in June and MGM Resorts International properties up 1 percent in May and 2 percent in June.
Jonas said Caesars’ May increase is due to a planned business conference.
“We believe Caesars’ relative outperformance is largely due to the State Farm conference which is primarily an exclusive benefit to Caesars,” Jonas wrote in his report.
The June forecast was Truist’s first look at interest rates for the month and could fluctuate in the coming weeks.
“June rates are trending positively with Strip up 5 percent, MGM up 2 percent and Caesars up 3 percent,” Jonas wrote. “While weekend prices were lower, weekday prices are driving the improvements (weekdays: Strip up 19 percent, MGM up 16 percent and Caesars up 9 percent).”
Truist divided guests into high-end, middle-end and low-end segments with expected high-end visitors up 13 percent in the second quarter, but mid-end down 7 percent and low-end down 8 percent. The high and low price segments are strong for May.
“We believe the low proxy inflection seen in May can be partially attributed to the recently announced (by MGM, Caesars and Resorts World) all-inclusive/package deals with a minimum stay required to help draw the value-oriented customer,” Jonas wrote.
Visitor ban
A temporary restraining order blocking the enforcement of Arizona’s gambling laws against prediction markets has been ordered in the US District Court in Arizona.
Arizona Attorney General Kris Mayes filed the first ever criminal case, a 20-count lawsuit, against Kalshi in March.
The Commodity Futures Trading Commission intervened with its request for a restraining order.
“The CFTC appreciates the court’s careful consideration of these important legal issues and the court’s decision to preserve the status quo,” CFTC Chairman Michael Selig said after the order was granted. “Arizona’s decision to weaponize state criminal law against companies that comply with federal law sets a dangerous precedent, and the court’s decision today sends a clear message that intimidation is not an acceptable tactic to circumvent federal law.”
The CFTC filed complaints against Arizona, Connecticut and Illinois, seeking declaratory judgments that federal law gives the CFTC “exclusive authority” to regulate event contracts and seeking permanent injunctions preventing the states from enforcing state laws against prediction markets.
In Nevada, Carson City District Judge Jason Woodbury extended a previously issued temporary restraining order by another 14 days and gives Kalshi until May 4 to implement geofencing or geolocation measures to prevent any user in Nevada from engaging in any activity or transaction deemed illegal under Nevada gaming laws as a result of the preliminary injunction he granted.
Another hearing is scheduled for Thursday before the Ninth Circuit Court of Appeals in a case involving prediction market platforms Crypto.com, Kalshi and Robinhood appealing U.S. District Judge Andrew Gordon’s ruling dissolving his own injunction that had blocked state enforcement. Gordon rejected the argument that the Commodity Futures Trading Commission has exclusive jurisdiction, writing that such a position would “upset decades of federalism regarding gaming regulation.”
Kalshi March Madness
Kalshi took in more than $1.8 billion in trading volume on March Madness, more than triple what it took in the 2024 U.S. presidential election, according to Legal Sports Report, which tracked the action of all 134 men’s and women’s NCAA tournament games.
Americans legally bet $3.3 billion at regulated sportsbooks on the tournaments, according to estimates from the American Gaming Association.
The men’s national title game between Michigan and UConn saw $105.5 million in trading volume on Kalshi to set the record for the most money traded on the site at a basketball game.
A total of $177 million was traded in the women’s tournament, including $16 million in the national championship between UCLA and South Carolina.
March was Kalshi’s biggest month for trading, with more than $13 billion, with sports markets accounting for 86 percent of the volume.
Harrah’s Oklahoma
Caesars Entertainment Inc. has opened its first casino in Oklahoma, partnering with the Iowa Tribe in Chandler, about 50 miles northeast of Oklahoma City.
Harrah’s Oklahoma opened the 173,000-square-foot property last week with Oklahoma sports legends Barry Switzer and Bob Stoops participating in the ceremonial first-game events on the casino floor.
The new property features more than 1,000 slot machines, 12 table games and a dedicated high-limit gaming area.
Chandler is located on historic Route 66, about halfway between Tulsa and Oklahoma City, and Caesars officials are expecting many visits this year for the 100th anniversary of the famous highway.
Wisconsin sports games
Online sports betting is expected to grow in Wisconsin with Gov. Tony Evers signing legislation allowing the state’s 11 Indian tribes to amend their gaming packages and offer online sports betting in the state.
Evers signed Rep. Tyler August’s bill, but he also warned tribes to work together “to shape the future of sports gaming in Wisconsin.”
“What I will not accept is a plan that splinters this opportunity into unequal pieces, allowing some tribes to reap large benefits while leaving only crumbs for others,” Evers said in a news release when he signed the bill. “An approach that exacerbates longstanding inequities between tribal nations is not good for Wisconsinites or Wisconsin. I will not entertain it as governor.”
– Contact Todd Dewey at tdewey@ theplayerlounge.com. Follow @tdewey33 on X.
