3 Casino Stocks That Could Make a Comeback in 2021
These casino stocks are likely to rebound as we inch closer to the post-pandemic reality
Source: Maridav/Shutterstock, Inc.
Restrictions on travel and the novel coronavirus-induced market slowdown have had a crippling effect on casino stocks in the past year. So much was expected from the casino business, with several new states approving gaming statutes and the popularity of iGaming.
However, Casino online real slots the approval of the vaccine and the resultant economic turnaround should boost casino stocks in 2021. In fact, investor sentiment is already improving, with a 3-month gain of about 20% for the VanEck Vectors Gaming ETF (NASDAQ: BJK )
Additionally, visitors are expected to pick up at a steady pace in the first few months of the year. And widespread adoption of the vaccine could bode well for a significant increase in activity in the second half of the year. Moreover, the White House transition should give investors more confidence about casino stocks with exposure to China.
With all of that in mind, let’s look at three casino stocks that could make a comeback this year:
- Wynn Resorts (NASDAQ:WYNN)
- MGM Resorts (NYSE:MGM)
- Las Vegas Sands (NYSE:LVS)
Now, let’s dive in and take a closer look at each one.
Casino Stocks to Buy: Wynn Resorts (WYNN)
Wynn Resorts has had it had incredibly tough during the pandemic, as it relied mainly on revenues generated from brick-and-mortar casinos. It has finally made its long-awaited entry into the online gaming market with its app called WynnBet. Moreover, with its operations weighted toward Macao, WYNN stock could witness a quicker recovery than its peers.
The company witnessed a double-digit reduction in revenues in the past three quarters. However, gaming revenue overall is picking up nicely in Macau, with a 228% increase in revenues in October last year. That said, Wynn Resorts has significant exposure towards the Chinese gaming capital, which will play a huge role in its recovery. Widespread adoption of the vaccine should lead to an increase in domestic foot traffic to Wynn’s resorts. Moreover, it is also expanding WynnBet’s presence to several new states to compete with the big fishes in the iGaming world.
MGM Resorts (MGM)
MGM Resorts boasts one of the largest integrated casino, hotel and entertainment resort portfolios globally. It is a critical player in the domestic market with a Las Vegas strip-heavy portfolio and a strong presence in several states. It has been in the news lately, with its $11 billion buyout bid for UK-based sports betting platform Entain. The deal has fallen through, but even without it, MGM stock has several catalysts that will continue to push it higher in 2021.
The going has been understandably tough for MGM, but its third-quarter results show a 280% increase in revenues sequentially. Foot traffic should continue to increase in the coming months, further boosting revenues. BetMGM, its online sports-betting platform, currently has 17% of the industry’s market share with heaps of potential. UBS analyst Robin Farley feels that the platform could include 38 states by 2025, with a roughly $20 billion market value.
Therefore, MGM’s investors have a lot to look forward to. And its stock price should rise considerably in the coming months.
Casino Stocks to Buy: Las Vegas Sands (LVS)
87-year-old Las Vegas Sands founder and CEO Sheldon Adelson breathed his last this month, Best casino in upstate new york one of the biggest losses for the gaming industry. He leaves behind a financially robust company with a sizeable cash balance and multiple tail-winds for massive growth this year. With the vaccine’s approval and higher gaming revenues from Macao, LVS stock is up roughly 4% in the past three months.
Earning results for the company have been lackluster in 2020, but analysts expect a huge bump in revenues in soon. A lot of it is down to the increase in Macao’s gaming revenues and the steady recovery in domestic demand. The company will be investing heavily in Marina Bay Sands Singapore and Macao in the next couple of years. Moreover, the new management under acting CEO Robert G. Goldstein will be focusing more on making massive inroads in the online sports gaming business.
Thus, expect Las Vegas Sands to explore new growth opportunities in the coming year and beyond.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Muslim Farooque is a keen investor The best online casino for real money and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
Casino Queen Grabs Second Baton Rouge Casino in GLPI Hollywood Deal
Posted on: December 16, 2020, 11:42h.
Last updated on: December 16, 2020, 02:35h.
For the second time this month, Casino Queen Holding Company Inc. is acquiring a gaming venue in Baton Rouge, La. On Tuesday, it announced the purchasing of the operating rights for the Hollywood Casino Baton Rouge.
The Hollywood Casino Baton Rouge. Casino Queen is paying $28.2 million for operating rights. (Image: Storyblocks)
The buyer is paying $28.2 million for the operating rights to the riverboat casino and entering into a sale-leaseback agreement with Gaming and Bitcoin gambling strategy Leisure Properties (GLPI). GLPI will retain ownership of the real estate assets. The news arrives just days after GLPI said the venue will be renamed Casino Rouge when it comes ashore in early 2022.
GLPI made the announcement in conjunction with a broader series of corporate moves, including the $31.3 million sale of the operating rights for the Hollywood Casino Perryville in Maryland to Penn National Gaming.
GLPI is one of three publicly traded gaming real estate investment trusts (REITs) in the US. It typically acts as a landlord, but it also owns and Caminho da fe 321 crypto casino operates a small number of casinos, including the aforementioned Hollywood venues. With the announced deals, Best online poker sites for ipad the company’s operational exposure shrinks, allowing it to focus on its core competency of property management.
Digging Deeper Into the Deal
As part of the agreement to offload operating rights for the soon-to-be Casino Rouge to Casino Queen, GLPI is becoming the gaming company’s landlord in another location.
“GLPI will retain ownership of all real estate assets at Hollywood Casino Baton Rouge (HCBR) and will simultaneously enter into a master lease with Casino Queen, which will include both the DraftKings at Casino Queen (“DKCQ”) property in East St. Louis, Ill. and the HCBR facility, for initial annual cash rent of approximately $21.4 million. The lease will have an initial term of 15 years, with four 5-year extensions,” according to a statement.
As part of the accord between the two companies, GLPI gets rights of first refusal on other Casino Queen sale-leaseback deals up to $50 million that could pop up over the next two years.
The REIT will proceed with previously announced construction spending on the Baton Rouge casino associated with bringing it ashore. That effort is expected to cost $21 million to $25 million.
Growing in Baton Rouge
Earlier this month, Caesars Entertainment said it’s selling operating rights to the Belle of Baton Rouge riverboat casino to Casino Queen for an undisclosed sum. GLPI also owns those real estate assets.
When that pair of transactions finalize, Casino Queen will own two of the three gaming venues in the Louisiana capitol. Because of the operator’s Illinois relationship with DraftKings, there’s speculation that one asset could eventually bear the name of the daily fantasy sports (DFS) and sportsbook company. Louisiana’s recent appointment of DFS and sports betting further supports this idea.
Casino Queen is controlled by Standard General, the hedge fund that’s the largest shareholder in Bally’s, the thriving regional gaming firm previously known as Twin River Worldwide Holdings.