{"id":288694,"date":"2023-09-07T15:01:32","date_gmt":"2023-09-07T20:01:32","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=288694"},"modified":"2023-09-07T15:01:32","modified_gmt":"2023-09-07T20:01:32","slug":"credit-card-spending-trends-could-signal-weakness-for-casinos","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/credit-card-spending-trends-could-signal-weakness-for-casinos\/","title":{"rendered":"Credit Card Spending Trends Could Signal Softness Ahead for Casinos"},"content":{"rendered":"

Since the start of 2022, a period including a stretch of the highest inflation in 40 years and the highest interest rates in two decades, the casino gaming industry mostly dealt with macroeconomic headwinds with aplomb. Some data points indicate that could be changing.<\/p>\n

\"Las
The Las Vegas Strip. Credit card spending trends could portend weakness ahead for casinos. (Image: Eater Vegas)<\/figcaption><\/figure>\n

For now, trends in Las Vegas are sturdy as Clark County notched a record $1.28 billion<\/a> in gross gaming revenue (GGR) in July, but signs are mounting that consumer cyclical spending could soon come under duress, if it\u2019s not already there, and post-coronavirus factors that bolstered the gaming industry are well in the past.<\/p>\n

A combination of post-Covid structural shifts and higher interest rates are no longer new, or temporary, changes,\u201d according to a new report from the Stifel Think Tank. \u201cCredit card spending analysis suggests deceleration in discretionary categories, though note slightly \u2018less bad\u2019 trends than in prior months. \u2018Soft landing\u2019 remains a constant discussion from investors and managements. While macro deceleration has slightly subsided it is only on the first derivative, we see very little evidence of an ability to stay in a comfortable neutral gear considering savings ratio depletion and softening jobs environment.\u201d<\/p><\/blockquote>\n

The research firm observed that in recent months, overall consumer spending has been healthy, but has been supported by essential categories such as food, gas, and healthcare, among others. Conversely, discretionary expenditures — the category in which gaming, travel, and leisure reside<\/a> — is \u201cweak to flattish or negative against easing comparisons.\u201d<\/p>\n

Potentially Ominous Credit Card Spending Trends<\/h2>\n

While Stifel doesn\u2019t break out gaming as its own category, it is part of the broader amusement, gaming, and leisure segment for which the research firm pointed out that credit card spending has been mostly flat for over a year.<\/p>\n

\n

There are glimmers of strength for operators such as Caesars Entertainment (NASDAQ: CZR), MGM Resorts International<\/a> (NYSE: MGM), and Wynn Resorts (NASDAQ: WYNN). For example, credit card transactions at amusement, gaming and leisure establishments increased 3.7% year-over-year for the three weeks ending Aug. 22. Credit card swipes at such venues also jumped 3.8% year-over-year for the three months concluding Aug. 22, according to Stifel.<\/p>\n<\/div>\n

Conversely, credit card debt held by US consumers recently topped $1 trillion. Making matters worse in terms of a potential looming retrenchment in consumer discretionary spending are the points that auto loan and credit card default rates reside at 10-year highs, noted Equifax<\/strong>.<\/p>\n

Obviously, Nevada GGR figures don\u2019t reflect spending declines in Las Vegas because those declines haven\u2019t arrived. On the other hand, the stock market is a forward-looking indicator and last month, casino stocks<\/a>, including Caesars and MGM, were drubbed.<\/p>\n

Other Potentially Worrying Signs<\/h2>\n

The US jobs market holds important clues for consumer discretionary spending and recent signals aren\u2019t great. While some politicians will debate the point and lie to command votes, the stark reality is the bulk of the jobs created in the US since January 2021, weren\u2019t \u201ccreated\u201d at all. Rather, those roles were restarted following COVID-19 shutdowns.<\/p>\n

Additionally, many of the new jobs that have been added are low-wage, part-time roles. Furthering the murky employment picture are rising layoffs in the technology sector and massive downward revisions to the June and July jobs reports.<\/p>\n

Specific to Las Vegas, the US casino center along with Dallas, Miami and Tampa Bay are most correlated with broader domestic housing trends, but the Stifel Think Tank observed that trends in that quartet of metro areas are turning negative or slowing markedly this year. That could be a drag on locals casinos in the Las Vegas Valley if things worsen.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Since the start of 2022, a period including a stretch of the highest inflation in 40 years and the highest interest rates in two decades, the casino gaming industry mostly dealt with macroeconomic headwinds with aplomb. Some data points indicate that could be changing. For now, trends in Las Vegas are sturdy as Clark County […]<\/p>\n","protected":false},"author":46,"featured_media":256379,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,81886],"tags":[81903,23],"acf":[],"yoast_head":"\nCredit Card Spending Trends Could Signal Weakness For Casinos<\/title>\n<meta name=\"description\" content=\"Slack credit card spending trends could weigh on casinos,\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/credit-card-spending-trends-could-signal-weakness-for-casinos\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Credit Card Spending Trends Could Signal Weakness For Casinos\" \/>\n<meta property=\"og:description\" content=\"Slack credit card spending trends could weigh on casinos,\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/credit-card-spending-trends-could-signal-weakness-for-casinos\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2023-09-07T20:01:32+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/strip.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1400\" \/>\n\t<meta property=\"og:image:height\" content=\"1050\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/credit-card-spending-trends-could-signal-weakness-for-casinos\/\",\"url\":\"https:\/\/www.casino.org\/news\/credit-card-spending-trends-could-signal-weakness-for-casinos\/\",\"name\":\"Credit Card Spending Trends Could Signal Weakness For Casinos\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/credit-card-spending-trends-could-signal-weakness-for-casinos\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/credit-card-spending-trends-could-signal-weakness-for-casinos\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/strip.jpg\",\"datePublished\":\"2023-09-07T20:01:32+00:00\",\"dateModified\":\"2023-09-07T20:01:32+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Slack credit card spending trends could weigh on casinos,\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/credit-card-spending-trends-could-signal-weakness-for-casinos\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/credit-card-spending-trends-could-signal-weakness-for-casinos\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/credit-card-spending-trends-could-signal-weakness-for-casinos\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/strip.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/strip.jpg\",\"width\":1400,\"height\":1050,\"caption\":\"The Las Vegas Strip. Credit card spending trends could portend weakness ahead for casinos. (Image: Eater Vegas)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/credit-card-spending-trends-could-signal-weakness-for-casinos\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"News\",\"item\":\"https:\/\/www.casino.org\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Financial\",\"item\":\"https:\/\/www.casino.org\/news\/financial\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Credit Card Spending Trends Could Signal Softness Ahead for Casinos\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.casino.org\/news\/#website\",\"url\":\"https:\/\/www.casino.org\/news\/\",\"name\":\"Casino.org\",\"description\":\"Latest Casino and Gaming News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.casino.org\/news\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\",\"name\":\"Todd Shriber\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"caption\":\"Todd Shriber\"},\"description\":\"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.\",\"sameAs\":[\"https:\/\/muckrack.com\/todd-shriber\",\"https:\/\/www.linkedin.com\/in\/toddshriber\/\",\"https:\/\/x.com\/etfgodfather\"],\"url\":\"https:\/\/www.casino.org\/news\/author\/todd-shriber\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Credit Card Spending Trends Could Signal Weakness For Casinos","description":"Slack credit card spending trends could weigh on casinos,","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.casino.org\/news\/credit-card-spending-trends-could-signal-weakness-for-casinos\/","og_locale":"en_US","og_type":"article","og_title":"Credit Card Spending Trends Could Signal Weakness For Casinos","og_description":"Slack credit card spending trends could weigh on casinos,","og_url":"https:\/\/www.casino.org\/news\/credit-card-spending-trends-could-signal-weakness-for-casinos\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2023-09-07T20:01:32+00:00","og_image":[{"width":1400,"height":1050,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/strip.jpg","type":"image\/jpeg"}],"author":"Todd Shriber","twitter_card":"summary_large_image","twitter_creator":"@etfgodfather","twitter_site":"@Casino_Org","twitter_misc":{"Written by":"Todd Shriber","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.casino.org\/news\/credit-card-spending-trends-could-signal-weakness-for-casinos\/","url":"https:\/\/www.casino.org\/news\/credit-card-spending-trends-could-signal-weakness-for-casinos\/","name":"Credit Card Spending Trends Could Signal Weakness For Casinos","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/credit-card-spending-trends-could-signal-weakness-for-casinos\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/credit-card-spending-trends-could-signal-weakness-for-casinos\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/strip.jpg","datePublished":"2023-09-07T20:01:32+00:00","dateModified":"2023-09-07T20:01:32+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"Slack credit card spending trends could weigh on casinos,","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/credit-card-spending-trends-could-signal-weakness-for-casinos\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/credit-card-spending-trends-could-signal-weakness-for-casinos\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/credit-card-spending-trends-could-signal-weakness-for-casinos\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/strip.jpg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/strip.jpg","width":1400,"height":1050,"caption":"The Las Vegas Strip. Credit card spending trends could portend weakness ahead for casinos. (Image: Eater Vegas)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/credit-card-spending-trends-could-signal-weakness-for-casinos\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"News","item":"https:\/\/www.casino.org\/news\/"},{"@type":"ListItem","position":2,"name":"Financial","item":"https:\/\/www.casino.org\/news\/financial\/"},{"@type":"ListItem","position":3,"name":"Credit Card Spending Trends Could Signal Softness Ahead for Casinos"}]},{"@type":"WebSite","@id":"https:\/\/www.casino.org\/news\/#website","url":"https:\/\/www.casino.org\/news\/","name":"Casino.org","description":"Latest Casino and Gaming News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.casino.org\/news\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85","name":"Todd Shriber","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","caption":"Todd Shriber"},"description":"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.","sameAs":["https:\/\/muckrack.com\/todd-shriber","https:\/\/www.linkedin.com\/in\/toddshriber\/","https:\/\/x.com\/etfgodfather"],"url":"https:\/\/www.casino.org\/news\/author\/todd-shriber\/"}]}},"_links":{"self":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/288694"}],"collection":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/comments?post=288694"}],"version-history":[{"count":5,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/288694\/revisions"}],"predecessor-version":[{"id":288906,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/288694\/revisions\/288906"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media\/256379"}],"wp:attachment":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media?parent=288694"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/categories?post=288694"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/tags?post=288694"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}