Wall Street investors are going all-in on gaming stocks in 2017. While the rest of America’s economy is slowing catching up, the gaming industry has soared for the past six months. The Dow Jones U.S. Gaming Index had risen more than 20 percent when recorded at the end of last week. For the first time in many years, gaming stocks are even outshining many tech stocks.
Las Vegas gaming companies have improved lately thanks to solid employment growth across the region. Clark County is likely to surpass $10 billion in revenue for the first time in ten years. In addition to the gaming fortune, tourism in general, is on the upswing in Vegas. Conventions and room rates have created sufficient revenue for the famous strip and nearby areas.
While the region continues to attract young and wealthy tourists, the elderly has set their sights on Vegas as well. Retirees are beginning to view Vegas as a great spot to settle down. Seniors are ideal customers for the gaming industry as they have more expendable cash and time than most citizens. The influx of retirees may also help to explain the strong housing market performance throughout the state.
Another reason for the ascension of gaming stocks is the recent move of the NFL’s Oakland Raiders to Las Vegas. The team currently residing in Oakland, has announced plans to call Vegas its new home in 2020. Construction on the Raiders’ $2 billion stadium is slated to begin later this year. Additionally, the NFL has also shown a renewed interest in the gaming industry; further cementing the field for expansion. The league’s investment in the Las Vegas area has investors predicting a huge rise in gaming stock in the near future.
With both the NFL and recent retirees moving in, Las Vegas and the gaming industry as a whole are in a very strong place. Investors are now more prone to double down in the gaming industry than the tech industry for the first time in a very long time. 2017 may very well be remembered as the year games dominated the stock market.