- It’s one of 2025’s best-performing casino stocks.
- Baby boomer wealth, One Big Beautiful Bill could propel the shares again in 2026.
- Durango expansion also seen as contributing factor to potential 2026 upside.
Up nearly 37% since the start of 2025, Red Rock Resorts (NASDAQ: RRR) is easily one of this year’s top-performing casino stocks. With the help of demographics and tax cuts, the operator may be able to repeat the feat in 2026.
In fact, Red Rock stock enters the new year with multiple tailwinds, including expansion at the Durango Casino & Resort in Southwest Las Vegas, favorable demographic trends, and expectations of advantages accrued by way of the One Big Beautiful Bill Act (OBBA). On the demographic front, the substantial wealth held by baby boomers and older Gen Xers could be a catalyst for regional casino operators such as Red Rock.
The 55+ age group (Boomers and some Gen X) accounts for 40% of the population, but ~73% of the wealth and 60% of gamblers,” notes Macquarie analyst Chad Beynon. “We have long considered this the number-one risk (will younger people age into becoming slot players; and what happens when Boomers are not filling casino floors?). People have aged into the segment, are living longer, and are wealthier.”
The analyst’s demographic comments weren’t specific to Red Rock, though he rates the stock “outperform” with a new price target of $70, up from $68.
OBBA Could Be a Catalyst for Red Rock Stock, Too
President Trump campaigned on eliminating taxes on tips and overtime pay – potential catalysts for the service-heavy economy of Las Vegas. Those provisions are part of the One Big Beautiful Act (OBBA) he signed into law earlier this year.
As it relates to Red Rock and other Las Vegas locals stocks, it’s important to note the overtime and tips tax policies don’t go into effect until next year, meaning workers won’t see the benefits of those policies until they get their first 2026 pay checks.
Red Rock previously said the no tax on tips policy could juice the Las Vegas economy to the tune of $200 million and the company could save $2 million to $3 million annually by not having to deal with taxation of tips.
“On every quarterly earnings call since the beginning of ’25, analysts have asked about the one big beautiful bill,” adds Beynon. “In sum, this bill will bring benefits to not only corporations (tax deductions, interest deductions), but also consumers, particularly senior citizens. As a result, we should see spending expansion following this season’s tax returns, particularly in 2Q-4Q26.”
Red Rock Stock Offers Long-Term Potential
Red Rock’s Durango expansion, which includes a recently completed fresh high-limit gaming area and added parking, is expected to be finalized earlier next year. That’s relevant to investors because although that venue is just two years old, it’s rapidly become a significant contributor to the broader investment thesis.
The operator has other irons in its Las Vegas Valley fire, including enhancements of existing venues, new projects, and building out its tavern business, that could support long-term views on the stock.
“Following the success of Durango (20%+ return), we believe RRR proved to the market that it holds a prime portfolio of assets that can be unlocked over the next 10 years,” concludes Beynon. “With seven large properties currently open (and ownership of all the real estate), we believe RRR can come close to doubling this by 2030E with projects in the Las Vegas Valley.”
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