Mohegan Sun Casino Pennsylvania 315 Wilkes Barre Pa oyment, owing to the COVID-19 pandemic. 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. Drake Online Casino No Deposit Bonus Spjh That helped it amass a large cash hoard that kept it afloat during the multi-month shutdown of domestic casinos. Now, MGM has . online casino indiana 1 billion in cash, giving it its strongest balance sheet ever. 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.

“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. foxwoods resort casino bingo resorts casino rewards golden nugget casino sign up Last month, Barry Diller’s IAC paid billion to acquire 12 percent of MGM’s equity, sparking a rally in the stock. chumba casino sister casino That’s because investors are enthusiastic about Diller’s reputation for helping small consumer online assets become internet behemoths. bicycle casino and hotel 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. chinook winds casino bingo But Bain argues Diller’s company may have paid too much for the privileglake tahoe casinos mgme. BetMGM is a joint venture with GVC Holdings, meaning MGM has to share the economics with its UK-based partner. Additionally, the business will generate just 0 million in revenue this year, with profitability three years away, according to the Roth analyst. is sam s town casino closed Free Casino Slot Games Listings Chfi

Key Insights and Expert Analysis

“To be clear, we believe IAC ownership is a positive for MGM. But its land-based difficulties trump its digital opportunities by a wide margin,” said Bain. choctaw casino 1832 steakhouse 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. No Deposit Bonus Casino 2 Ntpr 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 . That implies downside from the area at which the stock currently resides.

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. roulette g casino Coolcat Casino No Deposit Bonus Codes 2021 Rtaa “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. kentucky casino table games no deposit casino bonus 500 “We believe certain operators are structurally better positioned from the more visible, long-term dynamic Macau lake tahoe casinos mgmgaming market than Wynn. ”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. pai gow poker casino edge 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. That’s fine in a normal operating environment, and it’s exposure that’s served Wynn investors well over the years. online gambling poker 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. my choice casino locations Only recently have there been most signs of a pickup in visits. Some investors like Wynn stock due to Asia-Pacific exposure. But Bain sees risks by way of a lack royal ace casino mobile