{"id":267758,"date":"2023-04-05T17:33:11","date_gmt":"2023-04-05T22:33:11","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=267758"},"modified":"2023-04-06T14:27:51","modified_gmt":"2023-04-06T19:27:51","slug":"gulf-coast-casinos-steady-amid-economic-challenges","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/gulf-coast-casinos-steady-amid-economic-challenges\/","title":{"rendered":"Gulf Coast Casinos Steady Amid Macro Headwinds, Says Analyst"},"content":{"rendered":"

The Gulf Coast casino market, which consists primarily of Louisiana and Mississippi venues, is holding up relatively against a challenging macroeconomic backdrop.<\/p>\n

\"Harrah's
Harrah’s New Orleans, seen above. It’s one of the Gulf Coast casinos an analyst says is holding up well. (Image: NOLA.com<\/em>)<\/figcaption><\/figure>\n

That\u2019s the take of Truist Securities analyst Barry Jonas, who recently visited casinos in the Louisiana markets of Baton Rouge, La., Lake Charles, La., New Orleans and Mississippi’s Biloxi. He observed limited vulnerability over the near term from less-than-ideal economic<\/a> conditions.<\/p>\n

Our takeaway is that any impact from an unfavorable macro environment has been limited with most operators generally noting consistency and resiliency,\u201d wrote the analyst. \u201cVery few properties we visited spoke to any impact from macroeconomic uncertainty. The only notable softness appears to be with more value-oriented, lower-to mid-tier customers in select (but not all) markets.\u201d<\/strong><\/p><\/blockquote>\n

That\u2019s an encouraging view for Gulf Coast regional operators, which include publicly traded names Bally\u2019s (NYSE: BALY), Boyd Gaming (NYSE: BYD), Caesars Entertainment (NASDAQ: CZR<\/a>) and Penn Entertainment (NASDAQ: PENN).<\/p>\n

Gulf Coast Casinos Seeing Tale of Two Consumers<\/h2>\n

With inflation remaining stubbornly high, there\u2019s increasing concern among casino operators that consumers will look for ways to reduce costs during their stays at gaming properties, or eliminate those visits outright.<\/p>\n

In the Gulf Coast region, recent data indicate there hasn\u2019t been a big move by consumers to temporarily halt casino visits. Still, there are some signs of pullbacks in certain demographics.<\/strong><\/p>\n

\u201cThe only notable softness appears to be with more value-oriented, lower-to mid-tier customers in select (but not all) markets,\u201d added Jonas. \u201c(But there is) enthusiasm over social security cost of living increases and higher interest rates on savings flowing to discretionary spend for the older demographic.\u201d<\/p>\n

Conversely, there\u2019s resilience at \u201cdestination\u201d properties in the region, which include Harrah\u2019s New Orleans, Golden Nugget Lake Charles<\/a>, and Penn\u2019s L\u2019Auberge du Lac in Lake Charles.<\/p>\n

Those venues, which cater to bigger spenders, \u201chave not seen any blips, and nearly all properties we visited are running at 100% weekend occupancy, with weekdays relatively solid,\u201d according to Jonas.<\/p>\n

Refreshed Gulf Coast Casinos Could Help<\/h2>\n

While there\u2019s ample casino supply across the Gulf Casino region, there aren\u2019t many new venues. Owing to fierce competition, there\u2019s a burden on operators to allocate capital to keeping properties in the region fresh and up-to-date.<\/p>\n

Some are doing just that.<\/p>\n

\n

For example, Boyd Gaming<\/a> is revamping its Treasure Chest Casino in the New Orleans suburb of Kenner, while Caesars recently transitioned the Isle in Lake Charles to its venerable Horseshoe brand. Harrah\u2019s New Orleans is amid a $325 million renovation, and will eventually take the Caesars’ name. Jonas forecasts that each endeavor will generate the return on investment necessary to justify the capital spent.<\/p>\n<\/div>\n

“Horseshoe Lake Charles \u201cshould show a more finalized product and a clearer picture of what market share could look like. Management is already exploring expanding Horseshoe\u2019s hotel (253 rooms are around half of the property\u2019s pre-hurricane count and ~8% of the market). While we think the Horseshoe is a major upgrade from Isle and have no doubt the property will meet management\u2019s [return on investment] objectives ($50M in 2023),\u201d concluded the analyst.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Gulf Coast casino market, which consists primarily of Louisiana and Mississippi venues, is holding up relatively against a challenging macroeconomic backdrop. That\u2019s the take of Truist Securities analyst Barry Jonas, who recently visited casinos in the Louisiana markets of Baton Rouge, La., Lake Charles, La., New Orleans and Mississippi’s Biloxi. He observed limited vulnerability […]<\/p>\n","protected":false},"author":46,"featured_media":157810,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10,84799],"tags":[81897,81903,83571],"acf":[],"yoast_head":"\nGulf Coast Casinos Steady Amid Economic Challenges<\/title>\n<meta name=\"description\" content=\"Gulf Coast casinos showing resilience amid macroeconomic trials.\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Gulf Coast Casinos Steady Amid Economic Challenges\" \/>\n<meta property=\"og:description\" content=\"Gulf Coast casinos showing resilience amid macroeconomic trials.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/gulf-coast-casinos-steady-amid-economic-challenges\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2023-04-05T22:33:11+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-04-06T19:27:51+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/12\/nola.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/gulf-coast-casinos-steady-amid-economic-challenges\/\",\"url\":\"https:\/\/www.casino.org\/news\/gulf-coast-casinos-steady-amid-economic-challenges\/\",\"name\":\"Gulf Coast Casinos Steady Amid Economic Challenges\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/gulf-coast-casinos-steady-amid-economic-challenges\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/gulf-coast-casinos-steady-amid-economic-challenges\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/12\/nola.jpg\",\"datePublished\":\"2023-04-05T22:33:11+00:00\",\"dateModified\":\"2023-04-06T19:27:51+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Gulf Coast casinos showing resilience amid macroeconomic trials.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/gulf-coast-casinos-steady-amid-economic-challenges\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/gulf-coast-casinos-steady-amid-economic-challenges\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/gulf-coast-casinos-steady-amid-economic-challenges\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/12\/nola.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/12\/nola.jpg\",\"width\":1200,\"height\":800,\"caption\":\"Harrah's New Orleans. 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