Las Vegas Strip gaming revenue drops for third month in a row

For the third-straight month, gross gaming revenue on the Strip slowed, according to the Nevada Gaming Control Board.

"The result was soft across the board, with two less weekend days and the (Floyd Mayweather-Manny Pacquiao) fight comparison hampering the period," Deutsche Bank analyst Carlo Santarelli said in a note Thursday

"Slot handle on the Strip was down 8.2 percent, while table drop fell 24.3 percent (down 20.2 percent, excluding baccarat)," he said. Slot handle is an indicator of volume played.

For May, monthly gaming revenues along the Vegas Strip were $531 million, down about 12 percent from $601.2 million a year ago. Deutsche Bank had forecast Strip revenue would fall 4.3 percent for the month of May.

Strip gaming revenues were also downbeat in April, when gaming revenue fell 1.5 percent, and March, when it sunk 4 percent.

Shares of MGM Resorts slipped 0.7 percent to $22.59 in afternoon trading Thursday and Las Vegas Sands is down about 0.2 percent to $43.42. Wynn Resorts shares are off 0.5 percent at $90.77, although the stocks had been weaker earlier in the session.

The Strip revenues represented about 55 percent of Nevada's total gross gaming revenues during the month of May. Analysts expect comparisons in June to get easier given June 2015 was weak with revenues that month falling 16 percent.

Overall, the statewide gaming revenues in May were down 4.5 percent to $958.1 million from $1 billion a year ago.

Meantime, Penn National Gaming shares are up about 0.8 percent to $13.85. Macquarie Research had positive comments on the stock.

Macquarie made a case for upgrading Penn to an "outperform" rating. It cited several positive catalysts, including the upcoming opening of a casino near San Diego (Hollywood Casino Jamul) and the opening of the T-Mobile Arena one block away from its Tropicana Las Vegas property on the Strip.