Jefferies reports New Jersey casino revenue dipped in September
New Jersey's casino revenue fell 1.3% in September, with flat Q3 growth. Caesars (CZR) saw a 9.4% increase, while MGM (MGM) faced a 1.2% decline due to renovations. Penn (PENN) and Churchill (CHDN) reported growth of 3.9% and 3.5%, respectively. The overall U.S. market grew 3.4% in Q3, according to Jefferies.
How this was made
The 30-second read
Why it matters
The data provides a snapshot of operator performance, with some operators beating the flat market while others lag due to operational issues.
Market read
The report offers a modestly novel data point for casino operators, with limited immediate trading impact.
What to watch
Potential longer‑term upside for MGM once renovations complete; seasonal tourism trends could boost future quarters.
Background
Jefferies released the latest New Jersey gaming revenue data, highlighting a 1.3% decline in September and flat Q3 growth.
Ticker impact
Caesars Entertainment reported a 9.4% year‑over‑year increase in September revenue, indicating strength amid a flat state market.
likely modest upside as investors view the growth as a beat against the flat market.
Growth outperforms the overall 0.9% rise for Caesars, suggesting better-than‑expected performance.
MGM Resorts International saw a 1.2% decline, driven by weakness at its Borgata property undergoing a $107 million renovation.
likely pressure as the market prices in the short‑term revenue dip.
The decline contrasts with peers and reflects a temporary operational issue.
Penn Entertainment posted 3.9% growth in September, outperforming the flat state market.
potential modest upside as investors note the growth beat the market average.
Growth is modest but above the overall 0% trend.
Churchill Downs recorded 3.5% growth in September, beating the flat state trend.
likely neutral to slight upside.
Growth is modest and similar to peers.
Boyd Gaming showed 1.9% growth in September, modestly above the flat market.
likely neutral with slight upside potential.
Growth is small and may not move the stock significantly.
Market effects
Casino and gaming sector shows mixed performance; operators with renovations face short‑term pressure while others post modest growth.
New Jersey gaming revenue flat, indicating limited regional catalyst for broader market moves.
Limited; data is US‑state specific and unlikely to affect global indices.
Counterpoint
Investors may short MGM due to renovation disruption while taking long positions in peers showing growth.
Key entities
- Research FirmJefferies
Provider of the gaming revenue data.
