Casino stocks trade lower after state gaming revenue reports disappoint

Casino stocks fell lower on Friday after June gaming reports from Indiana and Iowa disappointed.

Gaming win for casinos in Iowa fell to $195.6 million from $222.6 million in May and $199.8 million for the same month a year ago. Meanwhile, gaming win for casinos in Indiana fell to $136.9 million from $140.7 million a year ago.

Bally’s Corporation (BALY), PENN Entertainment (NASDAQ:PENN), Boyd Gaming (NYSE:BYD), and Caesars Entertainment (CZR) all have casinos in Iowa. The same four have casinos in Indiana, as well as Hard Rock International, Full House Resorts (FLL), and Churchill Downs (CHDN).

Boyd Gaming (NYSE:BYD) fell 6.6% in afternoon trading. PENN Entertainment (NASDAQ:PENN) was down 5.9% and Caesars Entertainment (CZR) peeled off 4.7%. MGM Resorts (MGM), Red Rock Resorts (RRR), Golden Entertainment (GDEN), Monarch Casino & Resorts (MCRI), and Bally’s (BALY) were also lower during the session. Of note, casino stocks are particularly sensitive to consumer confidence and discretionary spending trends, which may have put the state gaming revenue reports in the spotlight.