U.S. casino visitation falls in August but revenues hold steady, according to new report

Foot traffic at U.S. casinos declined in August, continuing a downward trend in visitation since the pandemic, though revenues remain resilient as gamblers spend more per visit, according to Jefferies Equity Research.

Casino visitation in August fell 5.4% from a year earlier and was 17.5% below August 2019 levels, analyst David Katz said in a note. He added the figures were consistent with recent trends despite a sharp 10.1% drop in July, which he called an anomaly.

“[The data] supports our view that the greater step back in July was more outlier than trend,” Katz wrote.

While visitor numbers remain lower, gross gaming revenue has held firm, supported by higher individual spending and operational improvements. Katz said regional markets were performing better than Las Vegas in the near term, pointing to state-level differences.

Pennsylvania has surpassed 2019 visitation levels, while Illinois and New Jersey posted steeper declines. Black Hawk, Colorado, reported a 5% rise in traffic, though Katz noted the figure may reflect the boost from Monarch Casino Resorts’ 2022 property opening.

“We continue to believe regional gaming is better positioned for growth in the near term compared to Las Vegas, where expectations for the Strip are confirmed to be low until the group slate accelerates in the final trimester of 2025,” Katz said.

Katz cited Penn Entertainment and Churchill Downs as well-placed operators, highlighting Penn’s redevelopments in Illinois and Ohio and Churchill Downs’ expansion with new properties in Kentucky, Virginia, and New Hampshire.

The analyst said the U.S. casino sector is in a post-pandemic adjustment phase, with visitation stabilizing below pre-COVID levels but revenue supported by higher-yield activities, new openings, and shifting consumer behavior.