Casino stocks are taking a hit as consumers struggle with inflation and recession fears

Casino stocks are taking a hit as consumers struggle with inflation and recession fears

Article brief provided by CNBC
  • Contessa Brewer, CNBC
June 17, 2022 6:53 PM
  • Contessa Brewer, CNBC

Shares of casino companies have plummeted even as inflation has soared at rates not seen in four decades and fears of a recession rattle consumers and investors alike.

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Caesars Entertainment stock has plummeted 50% so far this quarter. Bally’s has dropped 40% over the same time period, and Penn National Gaming and MGM Resorts shares have declined 35%. To compare, the S&P 500, which recently entered a bear market, is down nearly 19% this quarter.

Yet, the nation’s commercial casinos just had their best April ever, according to the American Gaming Association. The industry posted $4.99 billion in revenue, up 12.4% year over year. It’s the second-highest grossing month ever, following March of this year.