Live Casino 35 Free Spins oyment, owing to the COVID-19 pandemic. chukchansi casino birthday No Real Estate, More VolatilityLast year, MGM sold Bellagio and Circus Circus, and the real estate liquidation theme continued into January, as the operator parted with MGM Grand and Mandalay Bay on the Strip. The gaming company struck while the iron was hot, commanding strong pricing on those properties prior to the onset of the pandemic. That helped it amass a large cash hoard that kept it afloat during the multi-month shutdown of domestic casinos. Now, MGM has . viejas casino dog friendly 1 billion in cash, giving it its strongest balance sheet ever. free online video poker 9 6 is twin river casino open now mohegan sun casino pennsylvania 315 wilkes barre pa But Bain is concerned that the lack of real estate levers to pull means the operator is too levered to Las Vegas, and investors may be overlooking that risk. Just 4 Fun Seneca Niagara Casino Ysbw Germany

“The cyclical, competitive, capital-intensive nature of the Strip combines with a basket of well-known macro/specific travel and Las Vegas negatives, seemingly dismissed by investors since IAC took a 12 percent stake in MGM,” said the analyst. three card poker online casino Last month, Barry Diller’s IAC paid billion to acquire 12 percent of MGM’s equity, sparking a rally in the stock. Restaurants In South Lake Tahoe Casinos Cceh That’s because investors are enthusiastic about Diller’s reputation for helping small consumer online assets become internet behemoths. live casino evolution black oak casino campgrounds Raining on the ParadeIAC getting involved with MGM is much more about the gaming company’s online casinos and BetMGM units than it is about land-based integrated resorts. But Bain argues Diller’s company may have paid too much for the privilegraging bull casino websitee. BetMGM is a joint venture with GVC Holdings, meaning MGM has to share the economics with its UK-based partner. foxwoods online gamers unite Additionally, the business will generate just 0 million in revenue this year, with profitability three years away, according to the Roth analyst. free triple 7 slot machines

Key Insights and Expert Analysis

“To be clear, we believe IAC ownership is a positive for MGM. cliff castle casino hotel arizona But its land-based difficulties trump its digital opportunities by a wide margin,” said Bain. Shares of Wynn Resorts (NASDAQ:WYNN) are lower by more than two percent Wednesday after Roth Capital analyst David Bain downgraded the gaming operator, citing, among other factors, risk in the marquee Macau market. An analyst downgraded Wynn’s stock today, citing exposure to that market and weakness in Las Vegas. The Wynn Macau is pictured above. (Image: Getty Images)In a note to clients today, Bain lowered his rating on the Encore operator to “neutral” from “buy,” while trimming his price target to . A Casino Operator Has Invented Eezp That implies downside from the area at which the stock currently resides. free slot games with free coins

The analyst points out that a VIP-led recovery in Macau may not materialize to the extent market observers previously believed, and that could weigh on Wynn equity. 888 Bicycle Casino Dr Efpv “While structural elements for visitation improvements are advancing, we believe a VIP-led recovery will be less broad-based than many anticipate and carry specific risks,” said Bain. “We believe certain operators are structurally better positioned from the more visible, long-term dynamic Macau raging bull casino websitegaming market than Wynn. miami club casino sign up bonus ”Risks mentioned by the Roth analyst include ongoing geopolitical volatility between the US and China, and concession renewal risk for US operators in Macau, among others. Risky BusinessBy Bain’s estimate, Wynn derives 68 percent of its earnings before interest, taxes, depreciation and amortization (EBITDA) from the world’s largest gaming center, adjusting for its ownership stake in Wynn Macau. firekeepers casino nascar That’s fine in a normal operating environment, and it’s exposure that’s served Wynn investors well over the years. But 2020 is far from the usual climate for gaming companies.

Wynn Macau and Wynn Palace, along with the special administrative region’s (SAR) other casinos, were closed for 15 days in February because of the coronavirus pandemic. Only recently have there been most signs of a pickup in visits. Some investors like Wynn stock due to Asia-Pacific exposure. lucky creek online casino no deposit bonus But Bain sees risks by way of a lack island view casino las vegas