Are you curious about the world’s biggest casino companies and investors? Explore this article to learn who is in control of the casino industry and understand how investments from these high rollers bring more financial opportunities to the table. You’ll be amazed at just how far they’ve come.
History of Casino Companies and Investors
Casino companies and investors have seen significant growth since their emergence during the late 19th century. Back then, the first national gaming conglomerates appeared, starting with steamboats offering riverboat gambling on the United States’ major waterways. The introduction of ground-based casinos saw a rapid growth in revenue for casino companies and investors in major metropolitan cities across the United States by the 1950s.
From there, poker rooms and other popular games began taking off in large cities with small casinos tied to larger resorts. With a boom in business due to Vegas’ flourishing nightlife and entertainment, Las Vegas quickly became the mecca of gambling. It wasn’t until 1988 when Native American Casinos were permitted under federal law that spurred Indian gaming enterprises down a successful path leading to revenue.
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The Biggest Casino Companies
The five biggest companies in the casino industry occupy an important place in the financial ecosystem. They’re hugely influential, and their activities directly affect how investors view the stock market. To paint a more accurate picture of how their money is managed and invested, let’s take a look at each of these major gaming concerns by examining their size, market cap, and stock performance.
- Caesars Entertainment Corporation: Caesars Entertainment is one of the largest international gaming companies in terms of revenue, with over 55 locations across the United States. Its market cap stands at $7.59 billion as of April 2019 with its shares experiencing an impressive price-earnings growth ratio of 82%.
- Wynn Resorts Ltd.: Wynn Resorts Ltd. is a hospitality giant in Macau and Las Vegas with operations on three continents. Its current market cap stands at $19.08 billion and its price-earnings growth ratio currently sits at 53%, indicating steady growth for this major player in the industry.
- Las Vegas Sands Corp.: The Las Vegas Sands Corp has a presence on four continents with successful operations in Las Vegas and Macau where it’s the largest gaming company worldwide by revenue. With a market cap currently standing near $53.14 billion, Las Vegas Sands is one of the world’s most influential gaming giants. Barron’s ranks it as one of America’s 100 Most Sustainable Companies for three consecutive years running due to its sustainable business practices. EPS growth for 2018 was an impressive 9%.
- MGM Resorts International: The MGM Resorts chain operates extensively in the U.S., Asia, and Europe. MGM has 7 properties located on The Strip which feature popular attractions such as MGM Grand Arena and Cirque du Soleil. MGM opened 13 new casinos across China between 2008-2013 alone. It ranked 26th among Barron’s 2020 “100 Most Sustainable Companies” list. MGM shares have had good success on Wall Street since their IPO debut back in December 2017 and have seen good price appreciation since then with a current Market Cap reaching just over $12 Bn as of late 2020.
- Melco Resorts & Entertainment: Listed on NASDAQ as MLCO, Melco serves as the parent company to popular Macau resorts such as City Of Dreams. Melco employs over 8500 people across Macau, Singapore & Philippines. Melco was also included among Barron’s 2020 “100 Most Sustainable Companies” list. The casino group posted EPS figures 1% above estimates for fiscal 2021 thus far. Its current Market Cap currently stands near 22 Billion USD.
The Biggest Investors
With the gambling industry continuing to experience record-breaking sums of money moving through its various markets, there is no shortage of interest in who are the biggest players in casino investing. These investors provide a great deal of capital for countries, states, and individual casinos looking to expand their operations or capitalize on new opportunities. There is a wide range of investors – from big banks, private equity firms, and venture capitalists to family offices and hedge funds – who have established themselves as key participants in the gambling industry.
Some of the most notable players in the casino investor scene include Blackstone Group and Colony Capital. Blackstone is an American private equity powerhouse that has extensive investments across media, real estate, hospitality, technology, and many other industries. The company acquired Tropicana Entertainment Inc., owner of 10 casinos throughout the United States for $1.25 billion dollars after outbidding Caesar’s Entertainment Corp. Colony Capital is a global investment firm focused on acquiring platforms with diversified holdings across industries such as hospitality and gaming. The firm was part of a consortium that purchased Kirk Kerkorian’s MGM Resorts International for $5 billion dollars and is actively investing across many sectors within both the US & International markets.
There are also many smaller private investor groups that are equally as active in providing financing solutions to casinos & developers around the world such as Sorkin Asset Management LLC and Madison Lane Capital Partners LLC who fund projects both big & small depending on their risk appetite.
Strategies for Investing in Casino Companies
The first strategy is to research any potential investments carefully. Knowing the underlying business principles and financial details of each casino company is a must before committing any money. This also applies to investing in casino stocks, or shares of a publicly traded casino – it’s important to understand not only the underlying gaming industry, its risks, and opportunities, but also the current market conditions for those shares.
Another strategy is to diversify your portfolio by investing in different types of gaming establishments: land-based venues such as casinos and resorts, online gambling sites, machine operators, card rooms, and other related businesses such as bingo halls or racinos.
Investing for the long term rather than active speculation is often recommended when it comes to casino companies; establish goals for return on investment (ROI) that encompass years instead of weeks or months. This means diversifying your portfolio further by choosing not only different types of gambling enterprises but also investing in markets around the world – not just Las Vegas or Atlantic City but far-flung areas such as Macau or Manila.
Conclusion
Huge corporate companies dominate the market as investors look for new technologies, customer bases, and evolving opportunities to bring more money in from gambling activities. However, it’s important to pay attention to both the risks and rewards before taking any large gamble of your own. By understanding both national markets and casino culture, you can better make sound investment decisions with gambling that have greater chances of achieving greater returns.
