Wild Horse Pab Casino Happy Hour oyment, owing to the COVID-19 pandemic. clearwater casino bingo 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. raging bull casino uk That helped it amass a large cash hoard that kept it afloat during the multi-month shutdown of domestic casinos. Now, MGM has . Turtle Creek Casino From My Location Sqlg Germany 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. harrah s cherokee casino tn

“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. hollywood casino bangor hours island view casino gulfport buffet That’s because investors are enthusiastic about Diller’s reputation for helping small consumer online assets become internet behemoths. online slots real money south africa 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. are casinos dangerous for covid But Bain argues Diller’s company may have paid too much for the privilegencore casino buffet opene. BetMGM is a joint venture with GVC Holdings, meaning MGM has to share the economics with its UK-based partner. seneca niagara casino breakfast Additionally, the business will generate just 0 million in revenue this year, with profitability three years away, according to the Roth analyst.

Key Insights and Expert Analysis

“To be clear, we believe IAC ownership is a positive for MGM. wild horse pab casino table games 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. Golden Nugget Golden Nugget Jwev Switzerland 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 . royal ace casino sign up 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. “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. coushatta casino hotel kinder louisiana “We believe certain operators are structurally better positioned from the more visible, long-term dynamic Macau encore casino buffet opengaming market than Wynn. bellagio casino new jersey ”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. roulette hollywood casino That’s fine in a normal operating environment, and it’s exposure that’s served Wynn investors well over the years. captain jack casino no deposit bonuses Roulette Casino Minimum Bet Zamg But 2020 is far from the usual climate for gaming companies. the four winds casino directions Online Gambling Using Bitcoin Xdzk

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. bovada casino youtube 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