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Takeaway: Takeaway: Vegas’s supposed strong recovery has been less than inspiring. Baccarat is another example

  • Slight growth in Baccarat was prevalent until last summer but growth has slowed to a crawl – the trend is now lower
  • Some analysts had expected a surge in Strip baccarat as Chinese VIPs looked outside of Macau for gambling destinations
  • With Baccarat no longer the growth driver, Strip gaming revenues could be under pressure.  Indeed, February GGR fell 4% YoY on the Strip and down 8% on a hold adjusted basis.
  • We remain skeptical of Street expectation of a V-shaped or U-shaped recovery in Las Vegas. RevPAR remains a bright spot but YoY growth in the Las Vegas hotel segment continues to underperform the national average.

LV STRIP: BACC NOT PICKING UP MACAU’S SLACK - bacc