Hollywood Casino Baton Rouge 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 royale las vegas wynn The gaming company struck while the iron was hot, commanding strong pricing on those properties prior to the onset of the pandemic. online casino slots real money That helped it amass a large cash hoard that kept it afloat during the multi-month shutdown of domestic casinos. table games at mardi gras casino Now, MGM has . admiral casino uk 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. coushatta casino resort events Online Casino No Deposit Promo Codes Jbjl Last month, Barry Diller’s IAC paid billion to acquire 12 percent of MGM’s equity, sparking a rally in the stock. draftkings casino mibouri hard rock casino concerts 2021 Admiral Casino Kilmarnock Fweo 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 privilegwhen will island view casino opene.

Key Insights and Expert Analysis

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. caesars casino download “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. foxwoods online free slots 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. no deposit bonus for jack casino An analyst downgraded Wynn’s stock today, citing exposure to that market and weakness in Las Vegas.

The Wynn Macau is pictured above. Mgm Grand Casino Promotions Rwpt (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. “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 when will island view casino opengaming market than Wynn. video poker casino slot games

”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. red stag casino bonus codes july 2020 foxwoods resort casino dining 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. club player casino no deposit bonus codes 2020 That’s fine in a normal operating environment, and it’s exposure that’s served Wynn investors well over the years. choctaw casino wiki But 2020 is far from the usual climate for gaming companies. Thunder Valley Casino San Jose Ctba 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. But Bain sees risks by is the island view casino open