Red Rock Bonds Look Promising as Las Vegas Casino Market Gets Stronger
Red Rock Resorts (NASDAQ: RRR) is now the best-performing Las Vegas locals casino stock in 2025, with its share price climbing nearly 35% year-to-date. The recognition comes as Truist Securities…
LAS VEGAS – APRIL 18: The hotel tower of the Red Rock Casino is shown after the resort’s grand opening April 18, 2006 in Las Vegas, Nevada. The USD 925 million property is the most expensive off-Strip casino ever built in Las Vegas. The casino features a 415-room, 17-story hotel tower, a 25,000 square-foot spa, a three-acre backyard pool area, a 16-screen movie theater and several bars and restaurants. (Photo by Ethan Miller/Getty Images)
(Photo by Ethan Miller/Getty Images)Red Rock Resorts (NASDAQ: RRR) is now the best-performing Las Vegas locals casino stock in 2025, with its share price climbing nearly 35% year-to-date. The recognition comes as Truist Securities analyst Barry Jonas upgraded the stock from “hold” to “buy,” citing strong market positioning and favorable economic conditions.
“The Locals market appears to be very well positioned amidst favorable population trends, and RRR is benefiting more than we expected, given a continued flight to quality,” states Jonas. “As former Vegas Local residents, we have always viewed RRR as holding some of the best in class properties.”
Jonas pointed to the One Big Beautiful Bill Act (OBBBA), which removes taxes on tips, as a major catalyst that could increase discretionary income in the Las Vegas Valley by $80 million to $85 million. Red Rock has estimated the policy could boost the local economy by as much as $200 million while saving the company up to $3 million in administrative expenses.
The company reported second-quarter revenue of $526 million, an 8.2% increase from last year, driven by higher play across customer segments, robust visitation, and strong table games performance. “We feel locals offer you a better value proposition, which is driving more people to our casinos, which includes accessible pricing, convenient locations, and personalized service,” said CFO Stephen Cootey. “It not only resonates with our local guests but is starting to resonate with our out-of-town guests as well.”
“This was easily the best quarter in our company's history,” Cootey added, noting that carded slot play, spend per visit, and profitability in the gaming segment all reached record highs.
Red Rock is currently expanding Durango Casino & Resort, upgrading Green Valley Ranch, and improving Sunset Station, with all projects on schedule and within budget. The company's strategic management deal for the $400 million North Fork Mono Casino & Resort in California, set to open next year, is expected to generate significant management fee revenue.
Bond analysts remain bullish on Red Rock's financial health, with Kim Noland of GimmeCredit rating the company's 2031 bonds as “outperform” with a yield-to-worst of 5.75%, supported by the strength of the Las Vegas locals market and reduced administrative costs from OBBBA.
