The October report on gross gaming revenue on the Las Vegas Strip rose 0.5% year-over-year to $706M despite the worse economic backdrop.

Weighing in on the report, CBRE Equity analyst John DeCree noted that after excluding poker from the monthly tally, GGR was up 3.3% due to the different timing of the World Series of Poker a year ago.

"Notably, Blackjack and slot win both reached all-time highs on the Strip in October, and total mass market gaming win (ex baccarat) was just 3% below the prior peak in November 2021 — painting a strong picture of Las Vegas and the core domestic consumer," added DeCree.

DeCree said a real story on the Strip is the surge in group and convention business, which was up 32% year-over-year and 20% vs. the 2019 tally. Total visitation increased 7.3% year-over-year to 3.6M to climb to within 1% of the pre-COVID levels.

DeCree expects the accelerating group and convention business will have a material positive impact on EBITDA and is part of CBRE's bullish thesis on the Las Vegas Strip in general.

Las Vegas revenue mix: MGM Resorts (NYSE:MGM) has the highest revenue exposure to Las Vegas at 47%, followed by Caesars Entertainment (CZR) at 45%, Vici Properties (VICI) at 30%, Golden Entertainment (GDEN) at 25%, and Wynn Resorts at 23%. Boyd Gaming (BYD) and Red Rock Resorts (RRR) also have indirect exposure to Strip spill-over.

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