U.S. Gaming: Notes from the Strip

Research evidence excerpt

U.S. Gaming: Notes from the Strip

Equity Research

22 May 2026

U.S. Gaming

Notes from the Strip

Regional trends are strong and it remains the most

attractive sector in Gaming here, in our view. Las Vegas

continues to stabilize the leisure piece, but more material U.S. Gaming, Leisure & Lodging POSITIVE

Unchangedrecovery is needed to get us more positive. Out of the

companies on our trip, we came away most favorable PENN U.S. Gaming, Leisure & Lodging

Brandt Montour, CFA

and RRR. +1 212 526 9947

brandt.montour@barclays.com

BCI, US

We recently hosted our annual Gaming corporate access day in Las Vegas, which included

management meetings with MGM, CZR, LVS, FLUT, PENN, RRR, and BYD. Elizabeth Heffern

+1 212 526 3592

In short, Regionals remain the strongest sub-sector, with no impact to speak of from higher elizabeth.heffern@barclays.com

gas prices, and May sounds like it has carried forward April’s strength. Las Vegas appears to BCI, US

be holding in against plan, and perhaps a bit better than consensus implied, and while we Kristi Martiko, CFA

think leisure demand remains on the softer side (specifically at the low end), it doesn't appear +1 212 526 7672

to be getting worse. The backdrop in Macau remains adversely competitive, with LVS opex kristi.martiko@barclays.com

investments likely to continue to weigh on margins, while MGM holds its share. Lastly, Digital- BCI, US

only operators continue their push into Prediction markets, with incremental bullishness William Wei

around market making. In terms of the stocks, we come away with reinforced optimism on +1 212 526 7591

PENN (on strong retail demand, abating retail supply pressure, momentum in iGaming), and yangjing.wei@barclays.com

incrementally favorable on RRR (on likely sequential improvement in underlying 2Q BCI, US