Casino Stocks 2025: Las Vegas & Macao Prices Plunge, Will They Hit New Lows?

Casino stocks are facing renewed pressure in 2024 as both Macao and Las Vegas report another month of disappointing visitation figures, signaling ongoing challenges for the gaming industry.

The Nevada Gaming Board revealed that August's statewide gaming revenue fell to $743 million, marking a 22% drop compared to 2019. Las Vegas itself saw even steeper declines, with the Strip down 39.2% and downtown falling 21.5%. These figures show no signs of recovery since July and only marginal improvement over June.

Key Insights

• Macao's September gaming revenue plummeted 90% year-over-year, a slight recovery from August's 94.5% drop but still devastating.
• Political unrest in Hong Kong and lingering effects of COVID-19 continue to deter high rollers from returning to Asian markets.
• Shares of Las Vegas Sands Corp. (LVS) and Wynn Resorts, Limited (WYNN) remain below critical support levels, struggling to regain momentum.

Despite these bearish trends, casino stock prices have shown minimal reaction to negative news, suggesting current valuations may reflect market realities. However, both LVS and WYNN have failed to reclaim their 200-day exponential moving averages (EMAs), which were breached earlier this year on heavy trading volume. Their long-term charts indicate a secular downtrend, with potential for further declines ahead.

What Is an Exponential Moving Average (EMA)?

An EMA places greater emphasis on recent price data, making it more responsive to current market changes compared to a simple moving average (SMA). Traders use EMAs to identify trend directions and potential resistance or support levels.

Wynn Resorts Stock Analysis (2013–2024)

Wynn Resorts surged above $160 in 2013, reaching a peak near $249.31 within six months. After hitting a six-year low in early 2016, the stock attempted a recovery but failed to surpass previous highs, eventually falling into a range-bound decline. The March 2024 low in the upper $20s represents an 11-year bottom, with resistance at the 200-day and 200-month EMAs preventing sustained gains. Investors should watch the $70 level closely, as a breakdown here could signal further downside.

Las Vegas Sands Stock Analysis (2013–2024)

Las Vegas Sands narrowly avoided bankruptcy during the 2008 financial crisis and rebounded strongly, peaking in the $80s in 2014. The stock has since traded within a range, with resistance near $50 and support around the low $40s. Attempts to break above the declining 200-day EMA have failed multiple times in 2024, reinforcing this level as a significant barrier. Maintaining support above $40 is critical for any bullish recovery.

Understanding Debt Load

Debt load represents the total liabilities a company carries, as detailed on its balance sheet. High debt levels can increase financial risk, especially in volatile sectors like gaming.

Final Thoughts

The casino sector faces significant headwinds in 2024, with key markets showing persistent weakness. Investors should monitor critical support levels closely, as failure to hold these could lead to further declines in casino stock prices.

Disclosure: The author does not hold positions in Wynn Resorts or Las Vegas Sands at the time of writing.

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