Despite its small population of just 128 people, the Black Hawk casino market in Colorado is booming. Ranked as the 10th largest and fastest growing in the US, four of the Black Hawk operators are publicly traded companies: Bally’s, Caesars Entertainment, Monarch Casino & Resort, and Penn Entertainment.
According to Stifel analyst Jeffrey Stantial, trends in the first quarter were impressive, and Black Hawk compared favorably against other regional casino markets. Furthermore, Colorado’s rapidly expanding population and the loosening of gaming regulations, allowing for higher table game limits, are both tailwinds for the market.
However, there are some headwinds to consider, such as the shallow labor pool and high inflation, which has resulted in elevated costs for utilities and food. Monarch Casino’s namesake Black Hawk property is the newest integrated resort in the town and has been driving up pricing power for neighboring operators.
In conclusion, Stantial believes the Black Hawk casino market is a bullish one to consider.
