Casino Operator Stocks Q2 Teardown: Bally's (NYSE:BALY) Vs The Rest

Looking back on casino operator stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Bally's (NYSE:BALY) and its peers.

Casino operators enjoy limited competition because gambling is a highly regulated industry. These companies can also enjoy healthy margins and profits. Have you ever heard the phrase ‘the house always wins’? Regulation cuts both ways, however, and casinos may face stroke-of-the-pen risk that suddenly limits what they can or can't do and where they can do it. Furthermore, digitization is changing the game, pun intended. Whether it’s online poker or sports betting on your smartphone, innovation is forcing these players to adapt to changing consumer preferences, such as being able to wager anywhere on demand.

The 9 casino operator stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 2.8%.

In light of this news, share prices of the companies have held steady as they are up 4.4% on average since the latest earnings results.

Bally's (NYSE:BALY)

Headquartered in Providence, Rhode Island, Bally's Corporation (NYSE:BALY) is a diversified global casino-entertainment company that owns and manages casinos, resorts, and online gaming platforms.

Bally's reported revenues of $679.1 million, up 9.2% year on year. This print exceeded analysts’ expectations by 4.3%. Despite the top-line beat, it was still a softer quarter for the company with a significant miss of analysts’ adjusted operating income and EPS estimates.

Bally's achieved the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 9% since reporting and currently trades at $10.87.

Read our full report on Bally's here, it’s free.

Best Q2: Red Rock Resorts (NASDAQ:RRR)

Founded in 1976, Red Rock Resorts (NASDAQ:RRR) operates a range of casino resorts and entertainment properties, primarily in the Las Vegas metropolitan area.

Red Rock Resorts reported revenues of $526.3 million, up 8.2% year on year, outperforming analysts’ expectations by 8.4%. The business had an exceptional quarter with an impressive beat of analysts’ adjusted operating income estimates.

Red Rock Resorts delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 9.8% since reporting. It currently trades at $60.35.

Is now the time to buy Red Rock Resorts? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Wynn Resorts (NASDAQ:WYNN)

Founded by the former Mirage Resorts CEO, Wynn Resorts (NASDAQ:WYNN) is a global developer and operator of high-end hotels and casinos, known for its luxurious properties and premium guest services.

Wynn Resorts reported revenues of $1.74 billion, flat year on year, falling short of analysts’ expectations by 0.6%. It was a softer quarter as it posted and a significant miss of analysts’ EPS estimates.

Interestingly, the stock is up 17.9% since the results and currently trades at $126.37.

Read our full analysis of Wynn Resorts’s results here.

PENN Entertainment (NASDAQ:PENN)

Established in 1982, PENN Entertainment (NASDAQ:PENN) is a diversified American operator of casinos, sports betting, and entertainment venues.

PENN Entertainment reported revenues of $1.77 billion, up 6.1% year on year. This print surpassed analysts’ expectations by 1.9%. Aside from that, it was a mixed quarter as it also logged a beat of analysts’ EPS estimates but a significant miss of analysts’ EBITDA estimates.

The stock is up 12% since reporting and currently trades at $19.04.

Read our full, actionable report on PENN Entertainment here, it’s free.

Golden Entertainment (NASDAQ:GDEN)

Founded in 2001, Golden Entertainment (NASDAQ:GDEN) is a gaming company operating casinos, taverns, and distributed gaming platforms.

Golden Entertainment reported revenues of $163.6 million, down 2.2% year on year. This number came in 2.4% below analysts' expectations. Zooming out, it was a mixed quarter as it also produced a beat of analysts’ EPS estimates but .

Golden Entertainment had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is down 9.3% since reporting and currently trades at $24.29.

Read our full, actionable report on Golden Entertainment here, it’s free.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.