Casino stocks are having a hard time getting out of the way of major turmoil markets over the effects of COVID-19 setbacks. Stricter restrictions in Europe have drawn investors’ notice, and many researchers warn that some US cities may see hospitals squeezed again this fall under the strain of COVID-19 cases that need medical attention.
Although casino traffic has been better than expected in many parts of the US and Las Vegas, the anxiety seems to be centered on the “return to normalcy” timeline with Big Pharma warning about the complexity and extended time for a mass distribution of a COVID-1
Notable rejects include Wynn Resorts (WYNN -7.1%), Red Rock Resorts (RRR -6.4%), Resorts with full house (FLL -4.5%), MGM Resorts (MGM -4.5%), Twin River worldwide (TRWH -2.7%), Penn National Gaming (PENN -0.4%) and Caesars Entertainment (RED -5.2%).
DraftKings (NASDAQ: DKNG) is also down 9.15% with their casino partnerships that are important to the business model. The decline comes after a weekend that saw the NFL, NBA, MLB, NHL, college football, Premier League football and golf US Open generate interest.