10 Top Casino Stocks to Invest In

  • Ashesh Anand
  • Oct 11, 2021
  • Financial Analytics
10 Top Casino Stocks to Invest In title banner

The casino business is a subset of the larger gaming industry that includes leisure and resort properties as well as casino gaming activities. Companies in the industry own and run casinos, resorts, hotels, ski resorts, and racetracks all over the world. 

 

Companies engaging in online gaming are also included in this category. Las Vegas Sands Corp. (LVS), Wynn Resorts Ltd. (WYNN), and MGM Resorts International are among the industry's most well-known casino operators (MGM). Many firms with big physical casinos had substantial quarterly revenue and earnings reductions in 2020 as a result of the COVID-19 epidemic.

 

Even before the coronavirus epidemic threw everything into disarray last year, the sector was undergoing fundamental change. Online casino games continue to increase in popularity, sports betting is becoming increasingly popular, and smaller gaming markets may be a better option for investors than big-name vacation destinations.

 

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Top Casino Stocks to Invest In

 

The casino and gambling sectors have experienced various changes in recent years, and the modern world also requires digital innovation, which has been bolstered significantly by the epidemic. 

 

People are becoming more interested in iGaming, also known as sports betting since it provides a wider range of casinos, less crowded, and more cheap rates, all while providing comfort and convenience. iGaming revenues have risen in places including Delaware, Michigan, New Jersey, and Indiana in the United States. Michigan's iGaming revenue hit $127.4 million in March 2021.

 

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Let us begin our list of the top casino stocks to invest in with these considerations in mind. Hedge fund emotions, analyst ratings, and fundamentals are used to choose the companies for the list.

 

  1. Las Vegas Sands: $46.6 billion

 

Now that it has decided to sell all of its Las Vegas casinos and focus only on the Asian market, Las Vegas Sands may need to change its name. In the United States, Macau, and Singapore, Las Vegas Sands (NYSE: LVS) owns and operates casino and convention venues. 

 

The firm provides a wide range of games, entertainment, overnight hotels, and expositions. Due to the fact that Las Vegas Sands recorded a net loss per share in the most recent quarter, and EPS growth rate for the table above was not possible to compute.


The image depicts the change in the growth of Las Vegas Sands stocks in the past years.

Las Vegas Sands Prices (source)


It agreed to sell The Venetian Resort, Palazzo Resort, and Sands Expo & Convention Center for a total of $6.25 billion, with Apollo Global Management purchasing the operating business and VICI Buildings, Caesars' real estate investment trust, acquiring the properties. 

 

No one is expecting a rapid recovery in the Macao market more than Las Vegas Sands, which explains why its stock has had the worst year-to-date performance, with a return of less than 3%.

 

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  1. Flutter Entertainment: $39.7 Billion

 

Flutter Entertainment (OTC: PDYPF) is most known in the United States for its FanDuel fantasy sports and sports betting division, but it also owns PokerStars, Betfair, FOX Bet, and TVG, an online horse and greyhound racing television network. 

 

It was established by the merging of Betfair and Paddy Power, and it is now exploring an IPO of a tiny piece of its FanDuel company, which controls 40% of the US sports betting market. As more states legalize sports betting, FanDuel and Flutter Entertainment are likely to be at the forefront. Its stock is up 12% so far this year.

 

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  1. DraftKings: $25.3 billion

 

By 2025, the sports betting market is anticipated to expand to more than $19 billion per year, with daily fantasy sports and sportsbook leader DraftKings (NASDAQ: DKNG) expected to be one of the major benefactors. 

 

DraftKings is the second-largest sports betting site in the US, with roughly a 25% market share, after becoming public last year through a reverse merger with a special purpose acquisition company, or SPAC. "A must-own for growth investors," according to analysts.
 

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  1. MGM Resorts International: $18.6 billion

 

MGM Resorts (NYSE: MGM), a world-class casino operator in its own right, is more focused on the American market than some of its competitors. As a worldwide resort firm, a regional market participant, and a builder of online and sports betting empires, it occupies a unique position. 

 

Its BetMGM app has been essential to its survival, and its link to the resort's member reward program keeps gamers coming back and encourages them to visit the resort's hotels as well. It has a strong presence in the majority of the markets in which it operates, and it offers investors a solid mix of physical and online gaming options.


Image depicts the change in growth of MGM's stocks in the past years.

MGM Prices (source)


According to Politzer, Las Vegas presently represents roughly 45 percent of overall adjusted income, followed by regional US casinos at 28 percent and China at 23 percent. 

 

MGM is Politzer's top overall stock selection, and he's optimistic about the company's significant exposure to the Las Vegas industry. In the first half of 2021, the company's BetMGM app was second in market share in aggregate U.S. online betting, accounting for roughly 20% of the market.

 

  1. Caesars Entertainment: $18.2 billion.

 

Following the acquisition of Eldorado Resorts, Caesars Entertainment (NASDAQ: CZR) is the world's largest casino operator in terms of the number of properties it operates, with over 50 resorts worldwide. 

 

With eight properties, it is also the second-largest on the Las Vegas Strip. It has recovered from its bankruptcy and is now a leading casino operator with a burgeoning sportsbook. This might be boosted by the company's recent relationship with sports live streaming giant FuboTV, which has recently joined the sports betting industry.

 

Food and beverage services are also provided by the firm. Caesars Entertainment recently announced that it had reached an agreement with 888 Holdings PLC (888) to sell the non-U.S. assets of sports betting and casino brand William Hill for £2.2 billion ($3.0 billion). 

 

The deal should be completed in the first quarter of 2022.
 

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  1. Penn National Gaming: $16.7 billion.

 

Another regional gambling behemoth is Penn National Gaming (NASDAQ: PENN). Its supremacy was originally formed in casinos and racetracks, but it has recently expanded into internet betting. 

 

With its Barstool Sports app, it has entered the booming sports betting industry, with great potential to establish a reputation for itself, even if it accounts for only a small portion of the company's income today. 

 

However, like Boyd, it has mostly catered to locals in the regional areas it serves, which is likely why its stock has performed so well this year, behind only Boyd and DraftKings.

 

  1. Vail Resorts Inc.: $15 billion

 

Vail Resorts (NYSE: MTN) owns and manages mountain resorts and urban ski areas in the United States and abroad. Ski mountain resorts, family-oriented mountain resorts, destination resorts with apres-ski activities, and year-round family holiday destinations are among the company's properties. 

 

In August, the business announced that Chief Marketing Officer (CMO) Kirsten Lynch had been named CEO and elected to the board of directors, with an effective date of Nov. 1, 2021. Rob Katz, the company's CEO, will take over as executive chairperson of the board and will continue to play a significant role in strategic choices and goals.
 

 

  1. Wynn Resorts: $14.7 billion.

 

Wynn Resorts (NASDAQ: WYNN), like Melco, relies largely on Macao for the majority of its income and earnings from the city's VIP and mass premium audiences. However, because Las Vegas accounts for approximately a third of its revenue, it has been hammered twice by the epidemic. 

 

The situation is expected to normalize now that Beijing has relaxed most travel restrictions, and Macao's monthly gaming income more than quadrupled in February, despite the fact that this was an admittedly low threshold to clear. 

 

Nonetheless, there is optimism that the high rollers will return, both domestically and internationally, and that the world-class resort will be able to expand once again.

 

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  1. Melco Resorts & Entertainment: $9.3 billion.

 

Melco Resorts & Entertainment (NASDAQ: MLCO) is located in Hong Kong and principally operates in Macau, China's sole gambling-legal territory. It also has an integrated resort in Manila, Philippines, and has announced plans to construct one in Cyprus in 2022. 

 

Melco's business, like that of all other Macao-dependent resorts, has been destroyed by the coronavirus outbreak. Travel restrictions have restricted the region's capacity to recover, despite the fact that it has been functioning since February 2020. Monthly gaming income has been crippled, falling by 80% last year; it's only marginally better this year, but it should recover slowly.

 

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  1. Boyd Gaming: $6.7 billion.

 

As previously said, regional markets have growth potential, and Boyd Gaming (NYSE: BYD) has been a leader in this sector. Although it has a large presence in Las Vegas, it is not dependent on the extremely tourist-dependent Las Vegas Strip. 

 

Instead, it focuses on locals, having casinos in ten states, allowing it to rebound well this year. With a better-than-40 percent return so far in 2021, it is the best-performing casino operator, and it also has a large sportsbook and internet gaming operation, making it a company investors should consider buying for the post-pandemic recovery.
 

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Summing Up

 

So, we've compiled a list of some of the finest Casino stocks to consider. You should certainly look into them and choose which one is best for you to invest in with the aid of an expert.

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