women at hotel front desk

Casinos Are Making a Killing

As the Pandemic Wanes, Casinos Gain Traction

For much of the COVID-19 pandemic people stayed home, shunning elective outings for leisure and moving work activities online. The travel and hospitality industries suffered as reduced demand decimated their bottom lines. Hotels and places like Las Vegas suffered a one-two punch as they lost both business customers and vacationers.

The casino industry saw 2020 revenue plummet 31% from the prior year to $30 billion, its lowest level in nearly 20 years. The beginning of a recovery in the gambling sector didn’t take long to manifest and in 2021 the industry saw revenues move back up, reaching $53.03 billion for the year.

Record-Breaking Revenue

This year the industry is on fire. March brought in record-breaking revenues of $5.31 billion, which doesn’t include the 248 tribal-run casinos that haven’t yet reported their results. For the quarter, gambling revenue came in at $14.31 billion. Slot machines brought in the bulk of the sales, but table games and sports betting posted the highest growth rates.

MGM Resorts (MGM) reported first quarter revenue from Las Vegas casinos doubled, while Wynn Resorts (WYNN) saw gains of 55.5%.

Executives Bet on Increasing Demand

MGM Chief Executive Bill Hornbuckle cited sports and entertainment programming as a key driver of demand in gambling activities. This may be an indication that billion-dollar marketing campaigns by sports-betting operators DraftKings (DKNG) and FanDuel could be starting to pay off.

Some market observers believe the rebound still has a lot of runway. As businesses return to in-person conventions and trade shows, casinos expect to see foot traffic increase. Also of note, the 55-and-up crowd hasn’t shown up in previously seen numbers. Their return to the casinos is expected to add to the bottom line. As Americans emerge from the pandemic’s shadow, it seems the gambling industry could be poised to reap the rewards.

Things are changing daily within the financial world. Sign up for the SoFi Daily Newsletter to get the latest news updates in your inbox every weekday.

Sign up

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store SoFi Android App, Get it on Google Play

James Flippin ABOUT James Flippin James Flippin is the son of a financial advisor who grew up hearing and learning about bond yields, interest rates, the stock market, and the ins and outs of Wall Street. After stints as a licensing and business broker for Marcus and Millichap in New York City, James moved into broadcasting and became a reporter and anchor. He covered crime, politics, finance, and tech at NBC News Radio while working part-time as a producer for SiriusXM. James graduated from the University of Delaware with a bachelor’s degree in political science and economics. He's also an accomplished podcaster with over 10-years of experience.

TLS 1.2 Encrypted
Equal Housing Lender