Top Casino Stocks to Consider Investing in for 2024

Though a night at the casino could feel like a blast from the past, the casino business is evolving quickly, and new trends offer investors a special chance.

Many states in the United States are starting to legalize online gaming, and established casino establishments as well as emerging online gambling businesses are following suit. At the end of the previous year, online casinos in PA set a record in revenue. No one would have thought that casinos in this state would show these kinds of results. Thanks to this, they will only increase their presence on the market, offer more unique promotions at PA online casinos, and provide gamers with exciting moments and opportunities. Other states where online casinos are legalized also show positive dynamics.

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In the meantime, the Asian industry, which is concentrated in the Chinese province of Macau, has established itself as the world’s biggest gambling market, offering many profit opportunities to potential investors.

1. MGM Resorts

Among the casino industry’s most remarkable property portfolios is MGM’s. It has properties in Atlantic City, Detroit, Mississippi, and several of the most well-known casino resorts on the Las Vegas strip, such as the Bellagio, MGM Grand, Luxor, and New York-New York. Additionally, it has a 56% share in MGM Macau and MGM Cotai, two Macau casinos.

Compared to many of its contemporaries, it is more vulnerable to Las Vegas tourism since almost two-thirds of its 45,000 hotel rooms are located on the strip.

When the pandemic initially started in March 2020, MGM’s stock fell sharply. However, with the support of an investment from IAC/Interactive (IAC -0.15%) and a shift to online gambling via BetMGM, the company has since recovered to post-financial crisis highs. In 2021, it created sportsbooks at a number of its locations and began accepting bets online in other states. For its regional and Las Vegas Strip properties, it reported record EBITDAR in 2022. However, for a large portion of the year, COVID-19-related casino closures in China negatively impacted its business.

2. Las Vegas Sands

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Las Vegas Sands is the best option for an investor who wants to bet on Macau. With five casinos in Macau and the Marina Bay Sands in Singapore, the corporation is solely focused on the Asian market. In March 2021, it sold the Venetian as well as its Las Vegas operations to a private equity company for $6.25 billion.

Regrettably, during the COVID-19 epidemic, the plan of concentrating on Asia failed when tourism effectively died as a result of stringent lockdowns in China and other Asian countries. The business battled the limitations in 2022 and reported an operational deficit for the third consecutive year.

However, as the area develops and regulations start to loosen, commerce should pick up again. Macau should continue to lead the world’s gaming industry due to its close proximity to sizable populations and the shared cultural fondness for gambling in China and other Asian countries. The business is likewise making strong progress at its Marina Bay Sands resort in Singapore.

3. Wynn Resorts

Another operator of varied casinos, Wynn owns 72% of the Wynn Palace and Wynn Macau. Furthermore, it is the sole owner of the Encore Boston Harbor, which debuted in 2019, as well as the Wynn and Encore in Las Vegas.

In October 2020, the business also launched Wynn Interactive, of which it controls 97%. It collaborated with BetBull, which it eventually purchased, to develop an online sportsbook and online casino. Almost selling Wynn Interactive to a SPAC in 2021, Wynn withdrew from the agreement in November of that same year.

In January 2022, rumors in the media suggested the corporation was looking for a buyer once again. The economics of online sports betting, according to former CEO Matt Maddox, are unfavorable as rivals are spending excessive amounts on client acquisition. Following a $267.4 million loss in 2021, the business lost $98.5 million in adjusted property   on Wynn Interactive in 2022.

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