8 July, 2024

Facing Facts: Q1 2024 analysis from across the globe

Gambling Insider tracks the Q1 results of operators across the gambling industry, on the hunt for the latest trends in 2024

Wynn Resorts Q1 revenue by segment ($m)

Source: Wynn Resorts

  • As was seen across the entirety of the land-based gaming market, Covid-19 caused rapid decline in quarterly revenue between 2020 and 2022, especially in Asia, where lockdowns were particularly strict. However, the market has since seen strong recovery, with Wynn’s Q1 2024 outperforming both 2019 and 2018.
  • While casino revenue is still behind pre-pandemic levels, investment in non-gaming amenities, such as rooms and food and beverage, have allowed Wynn Resorts to make a quick and efficient recovery. However, the majority of this revenue likely comes from Vegas operations, with Macau-based operations like Wynn Macau and Wynn Palace gaining most of their revenue from casino. For example, company wide, in Q1 2024 60.2% of revenue came from casino. Meanwhile, at Wynn Macau, the amount from casino rises to 80.7%.

Q1 total revenue for operators in Asia (HK$bn)

Source: Company site

  • Neither SJM nor Galaxy Entertainment have yet recovered their revenue to pre-Covid levels, which for Q1 2019 was HK$9bn (US$1.15bn) and HK$13.05bn respectively. However, the two seem to be on relatively similar growth trajectories, suggesting this may not be the case for much longer.
  • Between SJM and Galaxy Entertainment, it was the latter that saw the sharpest decline from 2019 to 2020. This is despite both operators running casinos exclusively in Macau.MGM land-based Q1 net revenue by segment ($bn)

Source: MGM

  • In Q1 2024, MGM China outperformed its pre-Covid results, indicating complete recovery. Among many casinos in Macau, there has been a shift towards the diversification of offerings (see Wynn), looking towards food, beverage and entertainment as ways to bring in alternative revenue.
  • On the other hand, regional operations have seen the least growth across MGM’s gaming ventures, up 34.3% from 2018 to 2024. Las Vegas Strip operations were up 58% in the same period, while MGM China has seen growth from 2018 of 76.7%.

Q1 commercial gaming revenue by state

Source: The American Gaming Association (AGA)

  • Accounting for all forms of commercial gaming, including sports betting and iGaming, these results highlight the strength of New York’s sports betting market. Online casinos have yet to be legalised in the Empire State, while Pennsylvania, New Jersey and Michigan account for three of the seven iGaming states.
  • It must also be noted that despite Q1 results, Pennsylvania and New Jersey typically are far more head-to-head in revenue, trading higher gaming revenue month-to-month. For example, in October 2023 New Jersey earned $4m more than Pennsylvania at $487m, while in March 2024 Pennsylvania outperformed New Jersey by $28m at $554.6m.
  • While there is a degree of fluctuation, between the five states listed, growth of commercial gaming has been shown to be fairly consistent, with only one state showing a year-on-year gaming revenue decline. Ohio’s 16% year-on-year decline in Q1 2024 was reported to be due to a significant decrease in sports betting that quarter, with spend down 37.1%. This is due to sports betting, both land-based and online, launching in the Buckeye State at the turn of the year in 2023.

Flutter Q1 revenue by segment ($m)

Source: Flutter

  • Following Flutter’s exit from the Irish stock market and decision to make the New York Stock Exchange its primary exchange, Flutter results began reporting in US dollars ($) rather than Pound sterling (£). As such, all revenue has been converted to USD as of conversion rates on 15 May 2024.
  • FanDuel now outperforms Flutter’s UK&I division, which includes longstanding brands such as Paddy Power and Betfair. In 2023 Flutter’s international segment also outperformed the UK&I, with a majority of revenue from this segment coming from iGaming as opposed to sports betting. US sportsbook Q1 adjusted EBITDA (loss) ($m).

US sportsbook Q1 adjusted EBITDA (loss) ($m)

Source: Company reports

  • DraftKings, the second-largest sportsbook in the US, has been operating at a loss for several years. This Q1, however, DraftKings reported a positive adjusted EBITDA of $22.4m. That is to say, while it doesn’t confirm that DraftKings will operate at a profit any time soon, it is a positive sign pointing to its possibility.
  • After dropping Barstool Sports and launching ESPN Bet in November 2023, Penn Interactive took on significant losses, reflected in the adjusted EBITDA decline reported in Q1 2024. Whether the operator will be able to recover these losses by next year, however, is yet to be seen.
  • Caesars Digital saw a significant dip in adjusted EBITDA for Q1 2022. This may, in part, be due to the re-opening of land-based casinos post-Covid, which may have encouraged bettors to put down their phones and return to the casino floor – evident by the 146% growth in Caesars Las Vegas Strip adjusted EBITDA that quarter.