Live Casino Vegas 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. That helped it amass a large cash hoard that kept it afloat during the multi-month shutdown of domestic casinos. Now, MGM has . sycuan casino spa chumba casino how to cash out 1 billion in cash, giving it its strongest balance sheet ever. payday 2 casino slot machines 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. bellagio casino card Captain Jack Casino No Deposit Promo Codes Xbkw

“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. yocha dehe at cache creek casino 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. big fish casino tips 2021 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 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.

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. 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. borgata online casino full site chukchansi casino membership (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. choctaw casino hugo oklahoma “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. poker casino in london blackjack 4 players online “We believe certain operators are structurally better positioned from the more visible, long-term dynamic Macau lake tahoe casinos mgmgaming market than Wynn. Bellagio Casino Rules Fxrh ”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. Lucky Ruby Slots Ilzj 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. table games at casino Las Atlantis No Deposit Code Gpzo Switzerland But 2020 is far from the usual climate for gaming companies. valley forge casino parking

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. online mobile casino no deposit bonus Only recently have there been most signs of a pickup in visits. no deposit bonus casino reviews Some investors like Wynn stock due to Asia-Pacific exposure. But Bain sees risks by way of a lack fanduel casino customer service number