Gambling exerts an irresistible appeal on many people. Those who act rationally may be better off investing their money in the stock market; however, as a hobby or for pure fun, the gambling industry has its raison d'être and is a billion-dollar industry that can also be of interest to investors. After casinos were hit hard by the Covid pandemic, the industry can benefit from a full reopening in 2022, and gamblers and tourists can be expected to return to cities like Las Vegas in large numbers. Casinos don't just make money from table games and slot machines, they operate like hotels and rely on room occupancy as well as conventions and other gatherings for a significant portion of their revenue. In this article, we present you with a selection of casino stocks.
MGM Resorts
- Company: MGM Resorts International
- Symbol (TWS): MGM
- ISIN: US5529531015
- Stock Exchange: New York Stock Exchange
- Country: USA
- Currency: US Dollar (USD)
- Market capitalization: USD 14.86 billion
- Sales (TTM) in USD: 10.7 billion
MGM is one of the largest and best-known companies in the casino industry, owning many of the best-known casinos on the Las Vegas Strip, including the Bellagio, MGM Grand, The Mirage, Luxor and New York-New York. In addition, MGM operates locations in Atlantic City, in Detroit and in Mississippi, as well as several other cities, and also holds interests in casinos in Macau. The casino resorts offer gaming, hotels, conventions, restaurants, entertainment, retail and other amenities. The company's casino operations include slot and table games, as well as online sports betting and iGaming through BetMGM. MGM Resorts is heavily dependent on Las Vegas tourism, with two-thirds of its nearly 50,000 guest rooms located on the Las Vegas Strip.
Wynn Resorts
- Company: Wynn Resorts Limited
- Symbol (TWS): WYNN
- ISIN: US9831341071
- Stock exchange: Nasdaq
- Country: USA
- Currency: US Dollar (USD)
- Market capitalization: USD 7.57 billion
- Sales (TTM) in USD: 3.98 billion
Another well-known Las Vegas-based hotel and casino company is Wynn Resorts. The company has more than 20 five-star hotels, restaurants and spas around the world. Wynn Resorts has won multiple five-star awards from Forbes Travel Guide. In addition to Las Vegas, the company also has a presence in Macau, as well as Boston. Wynn Resorts is also looking to develop more large luxury properties and announced plans for a resort near Dubai in 2026. The focus on underserved markets such as Dubai and Greater Boston offers further growth potential for the coming years.
Las Vegas Sands
- Company: Las Vegas Sands Corp
- Symbol (TWS): LVS
- ISIN: US5178341070
- Stock Exchange: New York Stock Exchange
- Country: USA
- Currency: US Dollar (USD)
- Market capitalization: USD 26.25 billion
- Sales (TTM) in USD: 3.98 billion
Las Vegas Sands is a casino company popular with tourists for its wide range of facilities, including gaming, entertainment, restaurants, exhibitions and museums. Las Vegas Sands stock may be of particular interest to investors who want to focus more on the Asian market, as the company operates five casinos in Macau, as well as the Marina Bay Sands in Singapore. The Las Vegas business was sold last year to a private equity firm for $6.25 billion. As Macau has been hit particularly hard by the pandemic and related lockdowns, the strategy has not worked so far and the stock has fallen sharply. However, this could also represent a favorable buying opportunity in the medium to long term if tourism returns to normal.
Caesars Entertainment
- Company: Caesars Entertainment Inc
- Symbol (TWS): CZR
- ISIN: US12769G1004
- Stock exchange: Nasdaq
- Country: USA
- Currency: US Dollar (USD)
- Market capitalization: USD 9.95 billion
- Sales (TTM) in USD: 10.07 billion
Caesars Entertainment is another American casino, gaming and hotel company based in Nevada. In 2020, Caesars Entertainment was acquired by Eldorado Resorts, which retained the Caesars name after the takeover. Following the merger, Caesars became the largest casino operator in the USA. As of December 31, 2021, the company owned, leased and managed 52 properties in 16 U.S. states with approximately 55,700 slot machines, video lottery terminals and e-tables, 2,900 table games and 47,700 hotel rooms.
Draft Kings
- Company: DraftKings Inc
- Symbol (TWS): DKNG
- ISIN: US26142R1041
- Stock exchange: Nasdaq
- Country: USA
- Currency: US Dollar (USD)
- Market capitalization: USD 6.44 billion
- Sales (TTM) in USD: 1.4 billion
DraftKings is an operator of online casinos and sports betting. The company is the first legal sports betting operator in New Jersey and also operates in West Virginia, Pennsylvania and Indiana. DraftKings, which went public via a SPAC in 2020, is an online-only gaming company and, alongside FanDuel, is one of the leading companies in the industry in the USA. In the three most important states for online sports betting - New Jersey, Pennsylvania and Michigan - DraftKings has a market share of around 30%. Like many of its competitors, DraftKings has grown through acquisitions. In August 2021, the company spent 1.5 billion dollars on the acquisition of Golden Nugget Online Gaming, strengthening its position in online casino games.