After hanging out with CEO Tom Reeg and Senior Vice President of Finance Brian Agnew, analyst Joseph Greff of J.P. Morgan came away “upbeat” about Caesars Entertainment. His optimism centered on three salient points: “Las Vegas strength and momentum”; “a path towards meaningful profitability” for CZR’s digital assets; “appealing free cash flow generation.” In Sin City, Caesars appears to be making money hand over fist. Attrition in group bookings has fallen to pre-pandemic levels, ADRs are much higher (think double digits) and occupancies average 95% or so. Given the absence of such 2022 headwinds as high utility costs, Omicron and a good-but-not-great event calendar, 2023 looks as though it will be very good indeed, leading into the 2024 Super Bowl, whose benefits should be obvious.

Nevada gambling winning catapulted 18% last month—yes, almost a 20% increase over post-Covid numbers (although January 2022 was dampened by Omicron). The good times just keep on rolling, to the tune of $1.2 billion. The Las Vegas Strip led the charge with a 26% vault, grossing $713 million. Strip slot revenue grew 24% on 24.5% more coin-in. Table games were good for the house, with winnings up 23% on only 5% more wagering. Baccarat saw players take a hiding, as the house won 42.5% more on 22% bigger betting.

Downtown kept pace, leaping 25.5% to $85 million. Laughlin (+1%, $42 million) missed out on the party. The Boulder Strip was up 13% to $96 million, North Las Vegas gained 8% to $24 million and miscellaneous Clark County jumped 17.5% to $152.5 million. Utah-fed Mesquite was up 8.5% to $16 million. But favored Mormon getaway Wendover slipped 2% to $21 million. A harbinger of things to come? As Wendover goes, so goes Nevada. Indeed, Reno was down 19% to $42 million, while Lake Tahoe nudged 2% higher to $17 million. Sparks continues on the comeback trail, up 17% to $14 million.