August saw a decrease in visitor numbers to U.S. casinos, a trend that reflects ongoing post-pandemic challenges. However, revenue figures have stayed robust, as gamblers continue to spend more during each visit, according to research from Jefferies Equity.

In August, the number of casino visitors dropped by 5.4% compared to the same month last year and was down 17.5% from August 2019, as noted by analyst David Katz. He observed that this reduction aligns with recent patterns, particularly following the unusual 10.1% decline in July, which he classified as an outlier.

“The data suggests that the significant dip in July is more of an anomaly rather than a consistent trend,” Katz stated.

Despite fewer visitors, gross gaming revenues have remained steady, bolstered by increased spending per gambler and enhancements in operations. Katz remarked that regional markets are currently outpacing Las Vegas, highlighting variations at the state level.

Pennsylvania has now exceeded visitor numbers from 2019, while Illinois and New Jersey have experienced more pronounced declines. Meanwhile, Black Hawk, Colorado, noted a 5% increase in traffic, a figure Katz attributed to the opening of Monarch Casino Resorts’ new property in 2022.

“We believe regional gaming markets are better poised for near-term growth compared to Las Vegas, where expectations for the Strip remain subdued until event schedules improve in late 2025,” Katz remarked.

Katz highlighted Penn Entertainment and Churchill Downs as strategically positioned operators, pointing out Penn’s investments in Illinois and Ohio and Churchill Downs’ expansion into Kentucky, Virginia, and New Hampshire.

The analyst concluded that the U.S. casino industry is undergoing a post-pandemic realignment, with visitor numbers stabilizing significantly below pre-COVID benchmarks, yet revenues benefiting from high-value interactions, new openings, and evolving consumer behaviors.