Best casino stocks to watch
Discover the top casino stocks to watch, including industry giants and emerging players in the global gaming market.
Top Casino Stocks to Watch: Investing in the Gaming Industry
The casino industry has shown resilience and adaptability in recent years, navigating through challenges and emerging stronger. As the sector continues to evolve, investors are keeping a close eye on casino stocks that offer potential growth opportunities. Let's explore some of the best casino stocks to watch and the factors driving their performance.
Overview of the casino industry
The global casino industry has experienced significant changes in recent years, adapting to new technologies and shifting consumer preferences. Online gambling has seen substantial growth, complementing traditional brick-and-mortar casinos. The industry has also expanded into new markets, with Asia-Pacific emerging as a key region for growth.
Despite facing challenges such as regulatory changes and economic uncertainties, the casino sector has demonstrated resilience. Many companies have diversified their offerings, incorporating sports betting and online gaming to attract a broader customer base.
Analysts project continued growth for the industry, with the global gambling market expected to reach $876 billion by 2026, according to Statista. This growth is driven by factors such as increasing disposable income, technological advancements, and the legalisation of gambling in new jurisdictions.
As the industry evolves, investors are closely monitoring casino stocks that are well-positioned to capitalise on these trends and deliver strong returns.
Top casino stocks to consider
Here are some of the best casino stocks to watch in 2024:
1. Las Vegas Sands Corp. (LVS)
Las Vegas Sands is a leading developer and operator of integrated resorts in Asia and the United States. The company's strong presence in Macau and Singapore positions it well to benefit from the recovery in Asian gaming markets.
With a focus on non-gaming amenities and a solid balance sheet, Las Vegas Sands is considered a top pick by many analysts. The company's commitment to expanding its portfolio and returning value to shareholders makes it an attractive option for investors.
Las Vegas Sands TipRanks Smart Score and analyst rating
Las Vegas Sands has a Smart Score of ‘7 Neutral’ but is rated as a ‘buy’ by analysts with 10’buy’ and 4 ‘hold’ (as of 07/10/2024).
According to LSEG Data & Analytics, analysts rate the Las Vegas Sands share as a ‘buy’ with 3 ‘strong buy’, 13 buy and 4 ‘hold’ (as of 07/10/2024).
2. MGM Resorts International (MGM)
MGM Resorts operates a portfolio of destination resorts across the United States and Macau. The company has made significant strides in the online gaming and sports betting markets through its BetMGM platform.
MGM's diverse revenue streams, including InterContinental Hotels Group PLC operations and entertainment offerings, provide stability and growth potential. The company's focus on digital expansion and strategic partnerships makes it a stock to watch in the evolving casino landscape.
MGM Resorts TipRanks Smart Score and analyst consensus
MGM Resorts has a Smart Score of ‘10 Outperform’ and is rated as a ‘strong buy’ by analysts with 11’buy’ and 2 ‘hold’ (as of 07/10/2024).
According to LSEG Data & Analytics, analysts rate the MGM Resorts share as a ‘buy’ with 4 ‘strong buy’, 15 ‘buy’ and 4 ‘hold’ (as of 07/10/2024).
3. Caesars Entertainment, Inc. (CZR)
Caesars Entertainment is one of the largest gaming companies in the world, with a strong presence in the US market. The company has been actively expanding its online gaming and sports betting operations, positioning itself for growth in these rapidly expanding sectors.
With a diverse portfolio of properties and a focus on operational efficiency, Caesars is well-positioned to benefit from the recovery in both regional and destination markets.
Caesars Entertainment TipRanks Smart Score and analyst consensus
Caesars Entertainment has a Smart Score of ‘7 Neutral’ but is rated as a ‘buy’ by analysts with 10 ’buy’, 2 ‘hold’ and 1 ‘sell’ (as of 07/10/2024).
According to LSEG Data & Analytics, analysts rate the Caesars Entertainment share as a ‘buy’ with 3 ‘strong buy’, 10 buy, 4 ‘hold’ and 1 ‘sell’(as of 07/10/2024).
4. Wynn Resorts, Limited (WYNN)
Wynn Resorts is known for its luxury casino resorts in Las Vegas, Macau, and Boston. The company's focus on high-end customers and non-gaming amenities sets it apart in the industry.
As international travel recovers and Macau's gaming market rebounds, Wynn Resorts is expected to benefit significantly. The company's expansion into online gaming and sports betting also presents growth opportunities.
Wynn Resorts TipRanks Smart Score and analyst consensus
Wynn Resorts has a Smart Score of ‘3 Underperform’ but is rated as a ‘strong buy’ by analysts with 11 ’buy’ and 2 ‘hold’ (as of 07/10/2024)
According to LSEG Data & Analytics, analysts rate the Wynn Resorts share as a ‘buy’ with 4 ‘strong buy’, 12 buy and 3 ‘hold’ (as of 07/10/2024).
Factors influencing casino stock performance
Several key factors can impact the performance of casino stocks:
- Regulatory environment
The regulatory landscape plays a crucial role in the casino industry. Changes in gambling laws, licensing requirements, and taxation policies can significantly affect a company's operations and profitability. Investors should stay informed about regulatory developments in key markets, as these can create both opportunities and challenges for casino operators. - Economic conditions
Casino stocks are often sensitive to economic cycles. During periods of economic growth, consumers typically have more disposable income to spend on entertainment and gambling.
Conversely, economic downturns can lead to reduced consumer spending, impacting casino revenues. Investors should consider the broader economic outlook when evaluating casino stocks. - Technology adoption
The integration of technology in the casino industry has become increasingly important. Companies that successfully leverage online platforms, mobile apps, and data analytics are better positioned to attract and retain customers. Investors should assess a company's digital strategy and its ability to adapt to changing consumer preferences when considering casino stocks. - Market expansion
Growth opportunities in new markets can significantly impact a casino stock's performance. Companies that successfully enter emerging markets or expand their presence in existing ones may see improved revenue and profitability. Pay attention to casino operators' expansion plans and their ability to execute these strategies effectively.
Casino stocks year-to-date performance comparison chart
Risks associated with casino stocks
While casino stocks can offer attractive investment opportunities, it's important to be aware of the potential risks:
- Regulatory risks
The casino industry is heavily regulated, and changes in laws or policies can have a significant impact on companies' operations and profitability. - Competition
The casino market is highly competitive, with companies vying for market share both in traditional and online gambling spaces. Intense competition can pressure profit margins and market share. - Economic sensitivity
Casino stocks can be vulnerable to economic downturns, as consumers may reduce discretionary spending during challenging times. - Geopolitical risks
For companies with international operations, geopolitical tensions or changes in foreign policies can affect their business in specific markets.
How to invest in casino stocks
If you're interested in investing in casino stocks, follow these steps:
- Conduct thorough research on the casino industry and individual companies, considering factors such as financial performance, market position, and growth strategies.
- Decide whether you want to invest for the long term or trade short-term price movements.
- Open a share dealing account with IG to buy and hold casino stocks, or consider a spread betting or CFD trading account for short-term trading.
- Use our platform or app to search for the casino stocks you're interested in.
- Choose the number of shares or the amount you want to invest, and place your trade.
Remember to diversify your portfolio and only invest what you can afford to lose. Stay informed about market developments and regularly review your investment strategy to ensure it aligns with your financial goals.
By carefully considering the factors influencing the casino industry and conducting thorough research, investors can identify opportunities in this dynamic sector. As always, it's essential to balance potential rewards with associated risks when investing in casino stocks.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Discover how to trade the markets
Explore the range of markets you can trade – and learn how they work – with IG Academy's free ’introducing the financial markets’ course.
