2020 has shown the weakness of the Las Vegas strip. That has industry experts suggesting that local casinos are a better business model long term.

October revenue numbers out of Nevada spelled the picture in a nutshell. Statewide revenue was down 19.5% year over year, but the Strip was hit hardest with a 30.2% drop. Locals revenue only fell by 11.1%.

Joseph Greff, a J.P. Morgan gaming industry analyst, suggested that casinos that cater to locals are a better investment as a result:

“The Las Vegas Locals market is exhibiting a faster recovery than the Las Vegas Strip gross gaming revenue, as evident on Boyd and Red Rock Resorts third-quarter earnings conference calls — which makes sense given the general Clark County area population benefit from payroll protection programs and unemployment checks and the retiree base in the area. We continue to prefer Las Vegas Locals exposed operators, Boyd and Red Rock Resorts over Las Vegas Strip operators.”