Top 5 casino companies to invest in

Casino expert

Updated: December 28, 2022

Investors find casino enterprises particularly appealing due to their resilient business frameworks and enticing profitability.

Owning and running more than just gambling halls, large-scale casino corporations often manage an array of hospitality ventures like lavish resorts, exhilarating racetracks, posh hotels, and even ski facilities spread around the globe, each becoming a substantial ticking cash register.

Here’s a closer look at the top five casino giants you might want to consider for your investment portfolio.

5. Wynn Resorts Ltd. (WYNN)

Wynn Resorts is a formidable name, operating renowned establishments like Wynn Las Vegas and Encore in Sin City, as well as Wynn Macau and Wynn Palace in Macau, the gambling meccas of the world. These destinations are tourist magnets, consequently driving substantial profits.

Though Wynn's financial metrics plummeted between 2015 and 2016—a repercussion of Macau's economic slump—they bounced back by 2017, reporting $85.7 million in revenue in the Q2 of 2021.

New locations provide steady growth

Exciting developments are on the horizon with Wynn's plans for the Crystal Pavilion in Macau, poised to become a pivotal tourist destination, coupled with a thriving Encore Boston Harbor opened in June 2019 showcasing tremendous growth potential.

Similar to how online casinos use first deposit deals To captivate fresh customers, leading brick-and-mortar casinos are spreading their wings into new territories, tantalizing an even broader array of thrill-seekers.

Analysts anticipate an annual EPS growth of 4% for this entity up till 2025, alongside a robust earnings potential hitting $1.89 for 2021. Presently, the stock sells at a 44 P/E ratio, surpassing its historical average of 30.1.

Although Wynn Resorts' stock exhibits significant price volatility, its future looks optimistic.

4. Penn National Gaming Inc. (PENN)

Penn National Gaming has a diverse portfolio encompassing casinos and horse racing tracks like Tropicana Las Vegas, Hollywood Casino at Penn National Race Course, and Prairie State Gaming.

Financial report

The company navigated Q3 of 2021 with a surprising 16.6% drop in revenue juxtaposed against a 223.1% surge in net income, credited to a substantial $14.3 million tax benefit compared to a $19.6 million tax expense in Q3 of 2019.

When Q4 rolled around, Penn National enjoyed a remarkable 47.76% year-over-year revenue boost and a 223.23% surge in net income.

With a market cap coming in at $13.782 billion, the company employed 28,300 people in 2019, an increase from 25,750 in 2018, while backed by 1,756 shareholders.

3. MGM Resorts International (MGM)

MGM operates under a holding banner, overseeing sprawling resorts across the U.S. and China. These resorts feature a myriad of services like hotels, gaming zones, dining, hi-tech entertainment, shopping, convention spaces, and much more.

Leadership changes and expansion

August 2021 saw IAC inject $1 billion into MGM, snatching up a 12% stake. With IAC's expansive brand portfolio and digital acumen, MGM expects to optimize its digital assets.

Their digital offshoot, BetMGM, a gaming and sports betting service, went live with an online casino in Pennsylvania by December 2021. They also became the NFL's Pittsburgh Steelers' pioneering Gaming Partner. Growth projections tick at 5% annually through 2025.

Despite restrictions in the land of the Maple Leaf, we put together a list of enticements that rival those offered down south.best Canadian casinos With the 'MGM 2021' initiative fostering cost reduction, efficiency enhancement, and earnings amplification, the company seems poised for a promising future.

Monarch Casino & Resort, notable for managing the Atlantis Casino Resort Spa in Reno, Nevada, through one of its arms, offers a plethora of entertainment options including a casino, dining venues, a hotel and motor lounge, family activities, a health club, among others.

2. Monarch Casino & Resort Inc (MCRI)

Third-quarter reports from 2021 highlighted a 9% hike in gaming revenue year-over-year and a 15.2% increase in net income. Monarch's market cap stepped up to $1.008 billion with a workforce of 2,300 full-timers.

Ongoing growth

Boasting a debt-to-equity ratio of 0.53 and a price-to-earnings ratio of 72.23, Monarch topped off Q4 2021 with $0.57 earnings per share.

Las Vegas Sands stands among the leading architects and operators of integrated resorts throughout Asia and the United States and is on a promising growth trajectory.

1. Las Vegas Sands (LVS)

Seizing the opportunity of Japan's legalized casino gambling, the company aims to unfurl lavish integrated resorts across Tokyo and Yokohama.

With Japan's market being vast, it promises substantial growth for Las Vegas Sands, although acquiring the necessary licenses and infrastructure development might take some time.

Further growth hinges on enhancing and expanding their Macau properties. Notable mentions include the Four Season Tower Suites Macao launched in 2019, with the eagerly awaited Londoner Macao and Singapore's Marina Bay Sands expansion soon to follow.

Development overview

Analysts predict a consistent 4% annual boost in the company's EPS over the next five years. The dividend of $3.08 per share offered by Las Vegas Sands, if maintained, could yield almost 6% at prevailing stock prices.

With $6 billion in revenue and a market cap of $43.5 billion, Las Vegas Sands stands apart as a top investment contender among the quintet.

Bear in mind, the casino landscape is highly susceptible to local and global economic shifts and upheavals, which might lead to heightened stock market fluctuations.

Keep in mind

The silver lining is the industry's robust recovery ability post-crisis, especially the big wigs leveraging tourist-attracting hubs scattered in prime gambling cities around the globe. The same holds for online gaming arenas as well.

Sources: CNN Business – Penn National Gaming Inc.new casinos Sources: Yahoo! Finance – MGM Resorts International (MGM).

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