Las Vegas locals casino operators face mixed prospects in 2025 after a challenging 2024 marked by increased competition and operational costs. The opening of Red Rock Resorts' Durango Casino & Resort in December 2023 has significantly impacted the market dynamics.

Deutsche Bank analyst Carlo Santarelli reports that Boyd Gaming (BYD), Golden Entertainment (GDEN), and Red Rock Resorts (RRR) experienced lower EBITDAR and same-store sales in 2024, with increased operating costs affecting performance. Only Boyd Gaming saw positive stock performance among the three operators.

The Durango Casino & Resort's impact has been substantial, with projected annual net revenue of approximately $340 million for 2024, including estimated net casino revenue of $225 million and gross gaming revenue of $260 million. The property is scheduled for significant expansion in 2025.

Key Market Insights:

• Durango's success hasn't significantly affected Boulder Strip and North Las Vegas venues
• Revenue growth potential could boost Boyd and Red Rock performance in 2025
• Market employment trends show concerning patterns, with workforce growth lagging behind revenue increases

Workforce Analysis:

• 2014-2019: 3% CAGR in revenue matched employment growth
• Post-2019: Revenue CAGR increased to 5.1% while job growth slowed to 0.9%
• Gaming revenue per workforce member up 4.2% over the last 12 months

The disparity between workforce growth and gaming revenue trends presents a potential challenge for 2025, particularly considering Durango's impact on the market. Analysts suggest that favorable gaming revenue growth will be crucial for operator performance in the coming year.

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