Investing in Casino Stocks

Learn what's happening with the major players in the casino industry.

Jeremy Bowma n-January 11, 2024 Updated Source Image: Getty Images

At night at a casino, imagine a lucky test at James Bond and Clapstable.

Online gambling is being legalized in many states in the United States, and old casino chains are also online gambling companies. During this time, Bazar, Asia, mainly in China, has established a position as one of the world's leading gambling markets, and one of the few licenses that can be operated on the Macau Peninsula has gained enormous benefits.

The casino industry, which was hit by the trend of COVID-19, has gained demand and recovered from gambling fans and tourists to Las Vegas. After all, casinos are not just making money with table games and slots. Like other leisure and hospitality promotions, it is operated in the same way as a hotel, relying on the occupancy rate of guest rooms, which is the same, and hosts conventions and other events. Gambling and sightseeing expenditures have high correlation with the soundness of the whole economy as a whole, so casino promotion is classified as consumer promotion.

If you are looking for the best casino promotion, see the 6 best casino promotions you can buy right now.

Top casino stocks in 2024

Top casino stocks in 2024

Source: Yahoo Finance (Market price data is as of January 11, 2024.

Company Name	Market price	explanation
MGM Resorts (NYSE: MGM)	$ 14. 6 billion	Operates casinos in Las Vegas, Macau and US areas, and enjoys online gambling through BetMGM.
Las Vegas Sands (NYSE: LVS)	$ 36. 8 billion	Casino pelator developed mainly in the Macau market.
Win Resorts (NASDAQ: Wynn)	$ 10. 4 billion	Operated casinos in Macau, Las Vegas, Boston.
Pen Entertainment (NASDAQ: PENN)	$ 3. 5 billion	We own local casinos and racetracks, online casinos, and BARSTOOL SPORTS.
Draft Kings (NASDAQ: DKNG)	$ 15. 3 billion	Owns online casinos and online sportsbook game platforms.
Caesters Entertainment (NASDAQ: CZR)	$ 9. 6 billion	A wide range of US casinos and sports online books.

1. MGM Resorts

1. MGM Resorts

MGM owns one of the most impressive real estate collections in the casino industry. It owns almost all the most popular casinos in the Las Vegas lane, such as Bellagio, MGM Grand, Luxor, New York New York, Atlantic City, Detroit, Mississippi, and other casinos in other cities. Apart from this, the company accounts for 56 % of the fourth casino-promotion in Macau, MGM Macau and MGM Kotai.

About 2/3 of the company's 45. 000 guests is on a strip, in fact, it is preparing for Ras Vegas more than almost all other analog companies.

The MGM shares fell when the epidemic first exploded in March 2020, but from that time, the company rose to the subsequent autumn support. In 2021, the company launched an online book in several states and opened a sportbook in several properties. In 2022, the company announced the EBITDAR record indicators of Las Vegas's station and territory. However, the company's activities in China dropped a shadow to most of the year due to the closure of Covid 1 9-related casinos.

At least, MGM has obtained a new 1 0-year business permit in Macau to ensure the future of this gambling area.

2. Las Vegas Sands

2. Las Vegas Sands

If you bet on Macau, you really need Las Vegas Sands. The company has five casinos in Macau, completely focusing on Asian Bazaar, like Singapore's Marina Bay Sands. In March 2021, a personal investment company related to the Venetian in Las Vegas was acquired for $ 605 billion.

Sadly, the merger strategy in Asia has counterproductive between Pandemia COVID-19, which has collapsed Macau's popularity due to severe regulations in China and other Asian countries. In 2022, the company was forced to fight the limits and the third year and hit management.

Macau has weakened regulations in the region, thanks to the great publicity and cultural proximity to games in other regions in China and Asia, and Macau has continued to be the world's leading game market. As is there, at least the company has no choice but to return. The company still has a great presence at Marina Bay Sands Resort in Singapore.

Las Vegas Sands, which has been focusing on international bazaars and moving slowly in online gaming, announced its intention to freeze with a strategic investor in digital gaming technology in July 2021. However, these intentions failed in the same way, and the two who led it, Davis Kathlin and David Williams, left to create their own personal investment firm.

3. Wynn Resorts

3. Wynn Resorts

Wynn is a diversified casino operator that owns 72% of the promotions of Wynn Palace and Wynn Macau in Macau. Apart from this, it fully owns Wynn and Encore in Las Vegas, as well as Encore Boston Harbor, which went public in 2019.

In addition, in October 2020, it partnered with Betbull, which it later acquired, to launch Wynn Interactive, which owns 97% of the promotion, and created an online sports tube and online casino. In 2021, Wynn effectively implemented Wynn Interactive through a SPAC, but in November 2021, it firmly rejected the deal. In January 2022, the media reported that the company was finding customers again. In the past, general manager Matt Maddox said that the economics of online sports do not count as approval because rivals waste so much money to acquire customers. In 2022, the company faded $98. 5 million in adjusted EBITDAR for Wynn Interactive, which then cost $267. 4 million in 2021.

SPAC

A SPAC, or special purpose acquisition company, is a non-fee business that promotes an initial public offering (IPO).

Wynn has not yet fully recovered from the pandemic covid-19. The company blew adjusted bad losses in 2021 and 2022 due to Macau and Wynn Interactive tasks, and also incurred huge interest costs due to $12 billion in debt.

At the very least, the company continues to rush to develop large luxury properties, and a while ago announced its intention to build a resort in Dubai by 2026. Wynn's orientation towards unaffected markets such as Dubai and Boston could potentially pay off for traders in the future.

4. PENN Entertainment

4. PENN Entertainment

Penn Entertainment shares soared early in the pandemic as traders were impressed with the promotion of online gambling. But since then, the promotions have cooled as the online gambling boom has passed, and Penn has literally lost all the revenue it made during the pandemic years.

The company has 44 properties in 20 states, but its promotions have started to correlate primarily with online gambling. Penn Interactive operates an online sportsbook and casino. The company also owns 36% of Barstool's sports promotions and has entered into a strategic partnership with Barstool to exclusively promote its own personal sportsbook, associated with Barstool Sportsbook.

After trading with the bath tool, the company has acquired another digital media and game platform THESCORE for $ 2. 1 billion, further strengthening its own status in online games.

Although the company's pandemic performance was negative, the company showed a strong growth in 2020 and 2021, unlike many other companies in the GAAP basis. In 2022, the profit was slightly reduced due to the increase in lease fees, but if online sports betting could make a big profit, it would be worthy of an absolute winner.

5. DraftKings

5. DraftKings

Draft Kings, which was listed via SPAC in 2020, is the only pure online betting company in this list. The online sports betting maintains Fanduel and a kind of duopolies, accounting for 27%of Fanduel's market share of 47%.

Like almost all other companies, Draft Kings also accelerated the company's rise through the acquisition. In August 2021, the company invested $ 1. 5 billion and acquired Golden Nugget Online Gaming, strengthened its status in online casinos, and expanded his hands to fields other than sports betting and everyday fantasy sports. There is.

Social distance and reconciliation between the COVID-19 pandemic brings online sports betting and gaming booms, and even if the COVID-19 pandemic is settled down, draft kings continues to rise. In 2022, profits have increased 73 % to $ 2. 24 billion, but the company has still lost $ 1. 5 billion, as it has continued to spend a lot of marketing.

By the end of 2022, the company has reached 26 million monthly paid users. It is not easy to win the draft kings potential if you are looking for opportunities to grow in the casino industry, despite the fact that it has not yet been profitable.

6. Caesars Entertainment

6. Caesars Entertainment

In 2020, Caesers Entertainment was acquired by Eldorado Resorts, and Eldorado took over Caesor's name. After the merger, Caesers became the largest casino operating company in the United States, 54 locations, including eight Las Vegas Strip. Caesers runs a casino in 16 states.

Before the merger, Eldorado was one of the best casino promotions. The company, which is currently known as Caesers since the 2014 new stock release (IPO), has achieved about 1. 700 % returns thanks to Eldorado's relentless stock buying strategy. In April 2021, the company acquired the $ 4 billion and acquired the UK online Game Company William Hill Group.

While the company has made progress in online gaming, the majority of its revenue still comes from casinos in Las Vegas and the region. Like other casino chains, Caesars is looking to leverage its national network with a loyalty program that rewards multiple location visits.

With strong growth in online gambling, a well-established sportsbook, and a balanced casino business in Las Vegas and the regions, Caesars is well positioned for future growth, especially if it wants to avoid the chaos of Macau.

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Should you buy casino stocks?

Should you buy casino stocks?

Casino stocks as a sector have lagged the market over the past decade, but there have been some big winners, including Caesars and online gambling stocks like DraftKings and Penn National.

With the rise of online gambling in the U. S., the next decade is likely to look very different from the previous one. Post-pandemic casino reopenings have led to a surge in land-based and land-based casinos, signaling that traditional gambling is not going away. While there is still a lot of uncertainty in the industry, risk-averse investors can find big winners in the casino space.

Jeremy Bowman holds a position in Iac. The Motley Fool's recommended options are long January 2025 $25 calls on Penn Entertainment and short January 2025 $30 calls on Penn Entertainment. The Motley Fool has a disclosure policy.