Published on: December 19, 2025, 01:49h.
Updated on: December 19, 2025, 01:50h.
- Ranked as one of the top casino stocks of 2025.
- The wealth of baby boomers and the One Big Beautiful Bill may drive the stock even higher in 2026.
- Expansion at Durango Casino also anticipated to contribute to potential gains in 2026.
Having risen nearly 37% since the beginning of 2025, Red Rock Resorts (NASDAQ: RRR) stands out as one of the leading casino stocks this year. Supported by demographic trends and recent tax breaks, the company might replicate this success in 2026.
As the new year approaches, Red Rock stock benefits from various favorable conditions, including developments at the Durango Casino & Resort in Southwest Las Vegas, favorable demographic statistics, and the anticipated benefits of the One Big Beautiful Bill Act (OBBA). The considerable assets of baby boomers and older Gen Xers may serve as a stimulus for regional operators like Red Rock.
“The 55+ age demographic (Boomers and some Gen X) represents 40% of the population, yet they hold approximately 73% of the wealth and 60% of all gamblers,” explains Macquarie analyst Chad Beynon. “We have always seen this demographic transition as a crucial concern. However, aging populations are spending more, living longer, and accumulating wealth.”
While the analyst’s observations were not exclusive to Red Rock, he assigns the stock an “outperform” rating, increasing the price target from $68 to $70.
OBBA: A Potential Boost for Red Rock Stock
The former President Trump advocated for the removal of taxes on tips and overtime pay, measures that could significantly impact the service-heavy economy of Las Vegas. These initiatives are part of the One Big Beautiful Act (OBBA), which became law earlier this year.
It’s crucial to note that the overtime and tips tax reforms will only take effect next year, meaning employees will not see immediate benefits until their first paycheck of 2026.
Red Rock previously indicated that eliminating the tips tax could inject $200 million into the Las Vegas economy, with the company potentially saving between $2 million to $3 million each year from not needing to manage tips taxation.
“Throughout every quarterly earnings call this year, analysts have been inquiring about the One Big Beautiful Bill,” Beynon comments. “In summary, this bill promises benefits not only to corporations (through tax and interest deductions) but also to consumers, especially senior citizens. We expect to see an expansion in spending following the tax returns this season, particularly in the second to fourth quarters of 2026.”
The Long-Term Outlook for Red Rock Stock
The ongoing expansion of the Durango Casino, featuring a newly completed high-limit gaming section and additional parking, is on track to be finalized early next year. This is significant for investors, as this new venue, just two years old, has rapidly become a vital part of the overall investment narrative.
The company is also exploring improvements to existing locations, new projects, and expanding its tavern operations, all of which may bolster long-term confidence in the stock.
“Following the success of the Durango project (with returns exceeding 20%), we believe RRR has demonstrated to investors that it possesses a valuable portfolio of assets that can be further developed over the coming decade,” concludes Beynon. “With seven major properties currently operational (and full ownership of the real estate), RRR is on track to nearly double this number by 2030 through various developments in the Las Vegas Valley.”