Morgan Stanley Comments On Gaming Industry

Analysts at Morgan Stanley offered commentary on the gaming and lodging industry.

Thomas Allen finds New Jersey online October revenue was weaker than expected stating, “NJ online gaming revenue came in at $9.5 million in October, a 7% m/m decline from Sept. and a disappointing result given the hope that seasonality would be a benefit heading into year-end (with colder weather expected to drive more people to stay indoors and hence, higher online gaming volumes).”

In addition, Allen finds that TD Bank’s decision to stop processing New Jersey online gaming transactions in late September was a likely contributor to the decrease in revenue.

Other events during the period include:

• NJ regulators approved the partnership between Borgata and Pala Interactive.
• The PokerStars launch is likely to not be completed this year due to unfinished applications.
• Total on-ground gaming revenues in Atlantic City declined 8.8 percent in October.
• Borgata on-ground revenue increased 9 percent year over year.

Gaming stocks are mixed in Friday’s session.

Las Vegas Sands Corp. LVS +0.3 percent
Boyd Gaming Corporation BYD +0.08 percent
Penn National Gaming, Inc PENN -2.5 percent
Monarch Casino & Resort, Inc. MCRI -0.41 percent
MGM Resorts International MGM -0.35 percent