David Katz, an analyst from Jefferies Equity Research, found that casino visitations have dropped since 2019 but revenue per visitor has slightly increased, with varying declines in some regions.
Jefferies Equity Research Study Records Less Visitors
David Katz is an analyst from Jefferies Equity Research and one recent study of his showed that casino visitations have fallen drastically over the past five years. Despite that, the incremental revenue per visitor has actually increased slightly for the same period of time.
According to the study, casino visitations have decreased in number by about 13.6% compared to 2019. In 2024 and 2025, casino visitations have remained about the same. Katz explained that the data was generally neutral to slightly negative for Boyd Gaming, Churchill Downs, Caesars Entertainment, Monarch Casino Resorts, and Penn Entertainment.
Detroit experienced a 3.8% year-over-year increase, but the pandemic significantly altered visitor habits, with Motown casinos seeing a 30.6% drop in attendance compared to 2019. Meanwhile, Atlantic City saw a 7% decline in visitation compared to early 2024 and an 11.5% decrease from 2019. Illinois fared worse, with an 8% drop from 2019 and a 12.9% decline from last year.
For Kentucky, the data is a bit less accurate as the state saw many recent casino openings, so a good comparison with the 2019 numbers is more difficult. However, this January there was a slight 2.3% increase in patronage in the state. In Colorado, the Black Hawk market experienced a 2.4% decline, despite Katz praising the strength of Monarch’s expanded resort. Ohio and Pennsylvania saw a decrease in visitations of 3.5% and 3.8%, respectively.
Why Is This the Case and What to Expect?
According to Katz, trends should continue to stabilize and potentially improve in 2025, as comparisons have started to ease vs. prior-year levels. However, he also warned that f higher costs for casino insurance, utilities, and labor might negatively impact performance.
After a weak December, Katz mentioned that casinos were seeing a customer base similar to what they had in the previous year. The analyst pointed out that Penn’s casinos, particularly in Illinois and Ohio, remain exposed to regions with intense competition.
Overall, foot traffic at casinos in most states is still somewhat choppy. According to Katz’s study, this reflects the monthly performance which is still normalizing post-COVID. In addition, new competition and renovation of venues have also impacted the monthly visitations of casinos.
In conclusion, David Katz explained that the main existing trends regarding the habits of gamblers will persist into the 2025 fiscal year.
