Aliante Casino Breakfast 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. casino poker games list The gaming company struck while the iron was hot, commanding strong pricing on those properties prior to the onset of the pandemic. south lake tahoe casino explosion That helped it amass a large cash hoard that kept it afloat during the multi-month shutdown of domestic casinos. Now, MGM has . 1 billion in cash, giving it its strongest balance sheet ever. seminole casino employment 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.

Last month, Barry Diller’s IAC paid billion to acquire 12 percent of MGM’s equity, sparking a rally in the stock. That’s because investors are enthusiastic about Diller’s reputation for helping small consumer online assets become internet behemoths. 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. Www Golden Nugget Hotel Casino Com Padw BetMGM is a joint venture with GVC Holdings, meaning MGM has to share the economics with its UK-based partner. yakuza 0 casino location Additionally, the business will generate just 0 million in revenue this year, with profitability three years away, according to the Roth analyst. hard rock casino from my location kansas star casino hotel wichita ks four winds casino table minimums “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.

Key Insights and Expert Analysis

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. bellagio casino parking An analyst downgraded Wynn’s stock today, citing exposure to that market and weakness in Las Vegas. island resort and casino menu The Wynn Macau is pictured above. 7 Card Poker Games Dyeo (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 . gold coast casino sports bar That implies downside from the area at which the stock currently resides. is draftkings considered gambling 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. Video Poker Casino Search Hjhv “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. black hawk casino black hawk co “We believe certain operators are structurally better positioned from the more visible, long-term dynamic Macau raging bull casino websitegaming 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. 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. blackjack casino online 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. clearwater casino is it open Free Online Draw Poker Video Games Sbri Only recently have there been most signs of a pickup in visits. boomtown casino number Some investors like Wynn stock due to Asia-Pacific exposure. morongo casino dancing But Bain sees risks by way of a lack