The soaring popularity of weight-loss drugs, including Novo Nordisk’s Ozempic and Wegovy, is already having unplumbed effects on some industries. Casino gaming could live among the groups that are vulnerable to broader usage of pharmaceuticals designed to aid patients turn a loss weight.
In a recent report to clients, Bank of America analysts natural covering multiple industries highlighted various corners of Corporate America that could potentially welfare or follow hampered by more people asking doctors for weight-loss drugs — known as GLP-1 agonists. Analyst Shaun Kelley noted that stream explore suggests there’s a human relationship between obesity and problem wagering.
He estimates that cassino customers that presentation problematic betting patterns answer for for 10% to 30% of industry revenue. Some members of that cohort are also obese, indicating that if they gravitate to weight-loss drugs, a headwind for the gaming industry could emerge.
This implies the usage of GLP-1 could create a 0-4% revenue headwind for US commercial gaming with higher peril for slot machines or regional gaming,” wrote Kelley.
In increase to Novo Nordisk’s Ozempic and Wegovy, Eli Lilly’s Mounjaro is among the weight-loss prescriptions gaining traction among doctors and patients.
Other Industries Could Be Altered past Weight-Loss Drugs
Gaming companies, including gambling casino operators and one-armed bandit machine manufacturers, are far from solo when it comes to industries that could live adversely unnatural past the manna from heaven inwards weight-loss dose consumption.
Analysts eyeshot traditional intellectual nourishment and potable producers and retailers, such as Walmart, as vulnerable to consumers reducing nutrient consumption and opting for healthier transportation after taking Ozempic or a comparable pharmaceutical. Likewise, fast-food chains, such as McDonald’s and Taco Bell, could follow pinched past patients taking weight-loss drugs moving out from fat foods.
Conversely, Bank of America pointed out that athletic apparel brands such as Deckers and Lululemon could do good as consumers move toward healthier lifestyles and thrust nest egg from intellectual nourishment consumption toward workout and keeping the exercising weight off. One thing is clear: The weight-loss dose market has elbow room to grow. Sir Henry Morgan John Rowlands await revenue inward the segment will gain $77 one million million past 2030.
“Social media activity documenting transformative exercising weight loss, together with the establishment of affordable insurance coverage more rapidly than anticipated, has helped parkway exact for obesity medicines beyond our expectations,” noted Mark Purcell, Daniel Morgan Stanley European biopharmaceuticals analyst.
Weight-Loss Drugs Could Weigh on These Casino Stocks
Bank of America’s Kelley noted he’s monitoring Boyd Gaming (NYSE: BYD), Caesars Entertainment (NASDAQ: CZR), MGM Resorts International (NYSE: MGM), Penn Entertainment (NASDAQ: PENN) and Red River Rock Resorts (NASDAQ: RRR) for potentiality fallout from broader adoption of weight-loss drugs.
As the deuce largest operators on the Las Vegas Strip, MGM and Caesars could benefit as weighting loss encourages to a greater extent folks to travel, but regional operators could be pinched past a make a motion toward healthier living. That could follow a state of affairs to varan with Boyd, which has a leaden Las Vegas footprint, but also operates 17 casinos outside of Nevada. William Penn could follow inward a similar situation.
All of Red Rock’s gaming venues are located inwards the Las Vegas Valley. Silver State ranked as the 33rd-healthiest state, according to Ozmosi, which used data sourced from the U.S. Centers for Disease Control and Prevention (CDC) for its rankings.
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