Daily Finance – There may be pretty lights, free-flowing cocktails and a theatrical buzz at the casino, but don’t go thinking that the treat for the senses is cheap. Slot players collectively walk out with as little as 90 percent of their money, on average. The odds are slightly better at the table games — including blackjack, poker and roulette — but there is no diversion where gamblers have the edge over the establishment. The house always wins.
The odds are more favorable at a casino than state lotteries that only return as little as half of what they take in as payouts, but that still doesn’t mean that a trek to Las Vegas, Atlantic City, or your nearest legal gambling institution is a rationally justifiable business decision.
However, the great thing for investors is that they don’t have to be on the wrong side of the wager. They can buy casino stocks to participate when the house ultimately wins.
Caesars Entertainment reported quarterly results on Tuesday, and it wasn’t pretty. Revenue at its casino operations dipped slightly for the quarter as gains in Nevada weren’t enough to offset declines at its non-Vegas properties. However, overnight guests helped push net revenue 3 percent higher for the quarter. Adjusted for one-time accounting hits, Caesars delivered a narrowing quarterly deficit.
Caesars closed its Golden Nugget casino in England last month, and earlier this month it completed the sale of its Bally’s Las Vegas, The Cromwell, The Quad and Harrah’s New Orleans in a $2.2 billion transaction.
