Casino stocks las vegas

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In this piece, we will take a look at the 15 best casino stocks to buy heading into If you want to skip our introduction to the hospitality and gaming industries, then take a look at 5 Best Casino Stocks To Buy Heading Into

Even though it's been four years since the initial outbreak of the coronavirus pandemic, its impact on the world is still being felt. Whether its industries such as travel and tourism that have now begun to operate at levels before the outbreak, or economies that are becoming comfortable with high inflation levels, life as comes to an end is quite different than that just a handful of years back.

One industry that was hit hard by the virus is the casino industry. Casinos, if you're unfamiliar, have jam packed floors with countless games and thousands of players testing their luck. Naturally, this environment goes against social distancing, and any drop in foot traffic hits casinos hard. The dropping revenues are particularly painful for this sector since casino owners often spend millions of dollars to build their establishments, and most of the funding comes through loans whose repayment depends on stable and healthy cash flow growth.

However, with the virus behind us and the economy remaining resilient, the casino and gaming industry is also experiencing a resurgence in revenue. Data from the Nevada Gaming Control Board shows that casino winnings stood at $ billion in August , which marked a slight 7% increase. When we compare the latest winnings with those of August - right when lock downs started to come down in full force - the latest figures mark a 63% growth over that month's $ million without incorporating inflation. At the same time, the winnings for August - the last month in the pre-covid era - were $ million, indicating that the Nevada industry is booming and has surpassed previous high winnings levels.

Another report that shows the strength in the casino industry is the States of the States report. Published by a gambling industry advocacy group, the report for this year's second quarter shows that commercial gaming revenue in the U.S. stood at $ billion. According to its publisher, the AGA, this marked the tenth consecutive quarter of revenue growth, and when read in parallel with the data from the Nevada board, the figures show that the casino industry is well on its way to recovery after dealing from historic shocks. In fact, gaming revenue for Q2 was the second highest grossing quarter in the industry's history, and it only fell short of the Q1 figures of $ billion. A deeper look at this data shows that table game revenue dropped by 2% annually, and the broader growth percentage was driven by the surge in sports betting and online gaming. The two segments grew by % and %, respectively, while the remaining segment, slots, posted % annual growth for $ billion in annual revenue.

Finally, an on ground perspective of the gambling industry's performance in the second quarter of comes from the management of Wynn Resorts, Limited (NASDAQ:WYNN) who shared in the firm's latest earnings call:

I see tremendous value in our business, and I know our brightest days are ahead of us. Our path is the clearest it has been in years, and our team is committed and energized. Turning to the quarter, and starting in Vegas. Wynn Las Vegas delivered $ million of adjusted property EBITDAR. On a hold-normalized basis, our EBITDA was up 3% on a very difficult year-over-year comp. We saw strength all over the place; the casino, the hotel, the restaurants, retail, you name it. All supported by a consumer that seems more than willing to continue spending on unique luxury experiences. Now, we obviously have a very particular customer type, skewing heavily to luxury; and we continue to closely monitor whether or not interest rates and inflation begin to impact that consumer, but so far, so good.
In fact, drop, handle and RevPAR are all up year-over-year in July. And that’s obviously before we get into the latter portion of the year, which has a number of tailwinds from city-wide programming. Turning to Boston, like Vegas, Encore had a strong quarter, generating $69 million of EBITDAR, an all-time property record. We generated record GGR in the casino, led by strong growth in slot handle and the addition of retail sports betting earlier this year.

With these details in mind, let's take a look at the best casino stocks for Some notable picks are Las Vegas Sands Corp. (NYSE:LVS), Caesars Entertainment, Inc. (NASDAQ:CZR), and MGM Resorts International (NYSE:MGM) and for more about casino stocks and companies, you should check out 12 Most Profitable Casinos in the World and 10 Casino Stocks that Pay Dividends.

15 Best Casino Stocks To Buy Heading Into

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Our Methodology

To compile our list of the best casino stocks to buy heading into , we first made a list of all casino companies that are publicly traded on U.S. exchanges. Then, the number of hedge funds that had invested in them as of Q2 end was determined through Insider Monkey's database of funds and the top 15 casino stocks are as follows.

15 Best Casino Stocks To Buy Heading Into

Bally's Corporation (NYSE:BALY)

Number of Hedge Fund Investors In Q2 15

Bally's Corporation (NYSE:BALY) operates hotels and casinos in several American cities. The firm's second quarter results saw it $ million in revenue for a % annual growth. Casinos and resorts accounted for more than half of the sales and marked a $33 million growth.

By the end of June , 15 hedge funds part of Insider Monkey's research out of the surveyed were Bally's Corporation (NYSE:BALY)'s investors.

Golden Entertainment, Inc. (NASDAQ:GDEN)

Number of Hedge Fund Investors In Q2 16

Golden Entertainment, Inc. (NASDAQ:GDEN) is an American firm headquartered in Las Vegas, Nevada. The firm has struggled on the financial front as of late since it has missed analyst EPS estimates in all four of its latest quarters. The stock is still rated Buy on average, but worries about a slowdown in consumer spending affecting the firm's outlook still persist.

As of Q2 end, 16 out of the hedge funds part of Insider Monkey's database had held a stake in Golden Entertainment, Inc. (NASDAQ:GDEN). Out of these, the firm's biggest shareholder is Scott Ross' Hill Path Capital since it owns one million shares that are worth $ million.

Monarch Casino & Resort, Inc. (NASDAQ:MCRI)

Number of Hedge Fund Investors In Q2 19

Monarch Casino & Resort, Inc. (NASDAQ:MCRI) is a Nevada based company that operates casinos in Colorado and Nevada. Its stock is rated Strong Buy on average and analysts have penned in a $13 share price upside based on the average share price target.

During 's June quarter, 19 hedge funds out of the tracked by Insider Monkey were the firm's investors. Monarch Casino & Resort, Inc. (NASDAQ:MCRI)'s largest hedge fund shareholder is Israel Englander's Millennium Management due to its $ million stake.

PlayAGS, Inc. (NYSE:AGS)

Number of Hedge Fund Investors In Q2 22

PlayAGS, Inc. (NYSE:AGS) is a backend casino company. It slot machines, card shufflers, and other associated products. A growth in casino revenues, particularly in the slot segment, seems to have helped the company too since it has beaten analyst EPS estimates in all four of its latest quarters.

Insider Monkey's second quarter of survey covering hedge funds revealed 22 PlayAGS, Inc. (NYSE:AGS) shareholders. Don Morgan's Brigade Capital is the largest investor among these, owning $ million worth of shares.

Light & Wonder, Inc. (NASDAQ:LNW)

Number of Hedge Fund Investors In Q2 22

Light & Wonder, Inc. (NASDAQ:LNW) is another backend casino company that provides gaming machines, tables, and other products. The firm expanded its presence in the budding online gambling market in August after it bought an ownership stake in a digital gaming company.

As of June , 22 out of the hedge funds part of Insider Monkey's database had held a stake in the company. Light & Wonder, Inc. (NASDAQ:LNW)'s biggest shareholder is Debra Fine's Fine Capital Partners through a $ million stake.

Inspired Entertainment, Inc. (NASDAQ:INSE)

Number of Hedge Fund Investors In Q2 24

Inspired Entertainment, Inc. (NASDAQ:INSE) sells gaming terminals and software to casinos. It also sells sports games. The firm scored a win in May when it extended its agreement with a British company to provide virtual sports to betting companies.

By the end of 's second quarter, 24 hedge funds among the tracked by Insider Monkey had invested in Inspired Entertainment, Inc. (NASDAQ:INSE). Out of these, the firm's largest stakeholder is Ari Zweiman's Capital Partners since it owns million shares that are worth $ million.

9. Gaming and Leisure Properties, Inc. (NASDAQ:GLPI)

Number of Hedge Fund Investors In Q2 28

Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) is a real estate investment trust that provides properties to casinos. It was added to the S&P MidCap index in September, and the stock is rated Buy on average with multiple Outperform ratings in August

28 out of the hedge funds part of Insider Monkey's June quarter of database were Gaming and Leisure Properties, Inc. (NASDAQ:GLPI)'s shareholders. Jeffrey Gates' Gates Capital Management is the biggest investor among these courtesy of its $ million stake.

8. Melco Resorts & Entertainment Limited (NASDAQ:MLCO)

Number of Hedge Fund Investors In Q2 29 Melco Resorts & Entertainment Limited (NASDAQ:MLCO) is a Hong Kong based company with resorts and casinos in Cyprus, Macau, and other regions. When compared to some of the larger casino firms on our list, it has been performing quite well financially as of late by having beaten analyst EPS estimates in all of its four latest quarters. By the end of this year's second quarter, 29 out of the hedge funds tracked by Insider Monkey had bought a stake in the company. Out of these, the biggest Melco Resorts & Entertainment Limited (NASDAQ:MLCO) investor is Ken Griffin's Citadel Investment Group through a stake worth $ million.

7. International Game Technology PLC (NYSE:IGT)

Number of Hedge Fund Investors In Q2 32

International Game Technology PLC (NYSE:IGT), as the name suggests, is a gaming technology company that provides products such as management and customer relationship software to casinos. It joined forces with Caesars in August by providing a custom game for Caesars Palace Online Casino.

As of June , 32 among the hedge funds profiled by Insider Monkey had held the firm's shares. International Game Technology PLC (NYSE:IGT)'s largest shareholder is Israel Englander's Millennium Management since it owns $ million worth of shares.

6. Everi Holdings Inc. (NYSE:EVRI)

Number of Hedge Fund Investors In Q2 33

Everi Holdings Inc. (NYSE:EVRI) provides software products and games to casinos. Like other backend casino companies, the firm has done quite well as it had beaten analyst EPS estimates in three out of its four latest quarters.

After digging through hedge funds for their Q2 shareholdings, Insider Monkey found that 33 had bought a stake in Everi Holdings Inc. (NYSE:EVRI). Jeffrey Jacobowitz's Simcoe Capital Management is the biggest stakeholder out of these due to its $ million investment.

Las Vegas Sands Corp. (NYSE:LVS), Everi Holdings Inc. (NYSE:EVRI), Caesars Entertainment, Inc. (NASDAQ:CZR), and MGM Resorts International (NYSE:MGM) are some best casino stocks that hedge funds are buying.

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