Casino and gaming stocks, including MGM Resorts (NYSE:MGM), Wynn Resorts (NASDAQ:WYNN), Penn Entertainment (NASDAQ:PENN), and Caesars Entertainment (NASDAQ:CZR) ticked higher in trading on Thursday after the Nevada State Gaming Control Board announced modest gaming wins in May.
Nevada Gaming Control Board Numbers
According to the State Gaming Control Board, Nevada’s gaming win rose 2.5% year-over-year in May to $1.32 billion. Las Vegas Strip casinos saw a 3.7% increase in gaming wins to $742.5 million. In comparison, downtown Las Vegas casinos saw a rise of 1.6% in wins, while Reno casinos’ gaming win fell by 1.1%. For casinos, gaming win is defined as the total cash and property (including checks received and collected) received from gambling activities (excluding admission revenues), minus cash paid out to patrons as winnings, with no deductions for taxes or operating expenses.
Furthermore, according to these statistics, penny slots led the tally with a $209 million win, and baccarat generated $126 million. On the other hand, blackjack generated $117 million, and sports betting brought in another $36 million for the sportsbooks, a significant year-over-year increase.
The month of May marked the 39th consecutive month that Nevada’s gaming win exceeded $1 billion. On a Fiscal year-to-date basis, gaming wins are up 4.5%, driven by a 6.5% rise for casinos on the Las Vegas Strip.
Is BJK a Buy?
For investors interested in casino and gaming stocks, the VanEck Gaming ETF (NASDAQ:BJK) is a good option. Analysts remain bullish about BJK, with a Strong Buy consensus rating based on 24 Buys and 11 Holds. Over the past year, BJK has declined by around 8.5%, and the average BJK price target of $51.67 implies an upside potential of 29.2% from current levels.
