Casino stocks have been hit hard this year as volatility from tariffs has affected the gaming sector and the overall market. 

Los Angeles-centric companies, including Caesars Entertainment (NASDAQ: CZR) and MGM Resorts International (NYSE: MGM), rank among the hardest hit names. Those stocks have decreased by 19.34% and 10.97%, respectively, year-to-date as market participants have factored in nearly worst-case situations for consumer cyclical equities, including gaming options. Certain analysts suggest that the situation isn’t as dire as it seems.

"With Buy rated CZR & MGM trading at their lowest levels since COVID, investors are expecting the worst for the consumer,” said Truist Securities analyst Barry Jonas in new report. “Still Q1 trends seem fine, our room survey has not seen any significant week on week deceleration, and management teams remain positive for now.”

Jonas did, nonetheless, decrease his price predictions on 11 gaming shares, including Caesars and MGM. He reduced the Harrah’s operator to $40 from $48 and decreased the Bellagio operator to $45 from $50. 

Risks Considered in Certain Casino Stocks 

The tariff goals of the White House have troubled numerous casino stocks, with the resulting devastation affecting every aspect of the industry. MGM and Caesars — the top two operators on the Las Vegas Strip — are showing signs of weakness. 

As Jonas indicates, the Strip experiences international tourism, with a considerable share of these visits coming from Canadian and Mexican travelers — two nations that have been prominently featured in President Trump’s tariff strategies. 

For investors, this may provide minimal recompense right now, but the analyst notes that the existing situation for Strip operators is not similar to the global financial crisis when earnings before interest, taxes, depreciation, and amortization (EBITDA) in the US casino center dropped by 35%. An additional element that influenced the situation at that time and is no longer relevant today was the substantial new supply entering the market in Sin City — a hurdle amid what was one of the most challenging economic climates in US history. In general, Jonas thinks the risks faced by Caesars and MGM are reflected in their stock prices. 

“While parts of Vegas could benefit from consumer trade-down (e.g. Vegas trip instead of more expensive Europe), Vegas is certainly not as cheap as it once was. Ultimately we see CZR and MGM risks as more than factored into current valuation,” notes the analyst.

REITs: Safeguards from the Tempest 

Las Vegas is not completely a hopeless situation for investors. Although casino stocks seem to suggest otherwise, there are some beneficiaries among landlords, specifically VICI Properties (NYSE: VICI) and Gaming and Leisure Properties (NYSE: GLPI). 

The latter has limited presence in Las Vegas, whereas the former is the largest holder of casino properties in the city. Both stocks have increased year-to-date. VICI’s 11.30% rally for 2025 might indicate that casino operators aren't facing crisis situations, as the real estate investment trust (REIT) possesses Caesars Palace, the Venetian, and the majority of MGM’s gaming properties in Las Vegas. 

“REIT cash flows have weathered multiple storms with limited impact,” notes Jonas. “We continue to favor both GLPI and VICI here given our view of their rock solid dividend profile.”

The analyst raised his price target on VICI to $38 from $35, making it the sole casino-related stock he offered that optimistic outlook to today.