Join Me for My Big Bet in Vegas
Pack your bags, folks — we're heading to Vegas!
Because that’s where I found our latest profit opportunity.
And don't worry: we won’t be throwing money into slot machines.
Instead, we’ll be placing a big bet based on bullet-proof data.
For a transcript of this video, see below. This transcript has been lightly edited for length and clarity.
Join Me for My Big Bet in Vegas
Hi, I'm Andrew Zatlin.
Welcome to Moneyball Economics!
Today we’re doing a deep dive into Las Vegas…
Because right now, here’s what you should be saying to yourself:
I need an investment in the gambling sector!
Sure, Wall Street’s bullish on this sector…
But it’s not pounding the table on it like it should be!
How can I be so sure about trade?
Simple: as we emerge from Covid, people will want some playtime in Vegas — or as I refer to it, Adult Disneyland.
And now let me show you the data that proves it.
Making Money by Focusing on the Data
The key to making money in the markets is to focus on the data.
And if you can stick with me for a minute as I show my data to you, you’re going to walk away from this convinced that you need a play in the gambling sector.
To kick things off, let’s look at where we were in 2019 (pre-Covid) versus where we are today.
As you can see here in orange, prior to Covid, about 3.5 million folks visited Vegas every month.
In 2020, things cratered. But in 2021, we started to see a recovery. And by the end of the year, the numbers had recovered almost completely.
We can see the recovery by looking at data on hotel occupancy rates.
And just look at those blue lines — occupancy is almost back to normal!
In fact, as we can see from the latest data, occupancy was even higher than it was pre-Covid.
Room Rates Going Up
With demand outstripping supply, we’re seeing massive inflation in Vegas hotel rates.
In fact, hotels are charging $25 more per room, per night.
And when you're renting out four million rooms a month, that $25 adds up to $100 million per month.
And that’s $100 million in pure profits.
Keep in mind, there are only a handful of casinos in Vegas.
So right now, they’re killing it.
Fewer Gamblers, More Gambling
But then it gets even better…
Because as you can see in the chart below, it’s a similar story for gambling revenue:
But let’s take a step back for a second. I want to make sure you understand what’s going on here:
Fewer people are going to Vegas… but they’re gambling more.
OK – so what do you think will happen in 2022 when Vegas starts filling up like it used to?
There’ll be even more gambling activity…
And by the way, those visitors will be paying even more for their hotel rooms!
Vegas: Not Just for Fun
But the data point that’s critical (the one Wall Street is missing entirely) is conventions.
You see, Vegas isn’t just “adult Disneyland.”
It’s also a huge convention destination for business.
Look how many people came to Vegas for a convention in 2019…
Almost 600,000 people per month!
But what happened in 2021?
Convention figures went to zero, nada — until November, that is…
And now conventions are on their way back.
That’s Why You Need an Investment in the Gambling Sector…
So let’s look at the big picture here:
The number of people coming to Vegas today is far below where it was in 2019…
But even so, casinos are generating more money.
Meanwhile, the number of people heading to Vegas will likely skyrocket in 2022.
2022 will be “The Year of Gambling…”
And that’s why you need an investment in the gambling sector!
Now look — if you subscribe to one of my premium research services, you know my pick in the sector already, and hopefully you’ve taken your position. So you’re in good shape.
But if you’re not a subscriber?
Well — get out there right now and find yourself an investment in the gambling sector!
Zatlin out. I'll catch you on the flip side.
In it to win it,
Moneyball Economics