Las Vegas locals casino operators face mixed prospects in 2025, following varied performance in 2024. The market dynamics are primarily shaped by the December 2023 opening of Red Rock Resorts' Durango Casino & Resort in Southwest Las Vegas.

Durango's impact has been significant, generating approximately $340 million in annual net revenue, with casino revenue around $225 million. The property has affected business at nearby competitors while also causing increased promotional activity among independent casinos.

Boyd Gaming (BYD) emerged as the sole gainer among local operators in 2024, while Golden Entertainment (GDEN) and Red Rock Resorts (RRR) experienced declines. Deutsche Bank analyst Carlo Santarelli notes that operators faced lower EBITDAR and same-store sales due to increased operating costs.

For 2025, Boyd and Red Rock could see improved performance if gaming revenue growth exceeds expectations. Durango's expansion plans aren't expected to significantly impact Boulder Strip and North Las Vegas operations, though the property itself is projected to maintain strong revenue growth.

Workforce trends present a potential concern for the sector. While gaming revenue showed a 5.1% CAGR since 2019, employment growth only reached 0.9%, compared to the pre-2019 period when both metrics grew at around 3%. This disparity, combined with gaming revenue per workforce member increasing 4.2% over the last 12 months, raises questions about sustainable growth in 2025.

The success of local casino operators in 2025 will largely depend on market growth and their ability to maintain revenue momentum despite workforce challenges and competitive pressures from new developments like Durango.

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