The gambling industry is one of the industries that grow rapidly within the market. According to the statistics and the reviews 2019 has been incredibly successful for the casino stocks and the gambling sector investors. According to some financial advisers, there is very little similarity between investing in the stock market and gambling whether on a slot machine or table games.
If we go into more detail and a bit more into depth research of the company’s financial matters we will face the following picture. Taking into consideration the whole knowledge regarding the health of the overall economy with the market insight we will see that the odds are in favor of a seasoned trader turning a profit on their stocks.
There is another twist within the current 2019 year. The hefty stock market made even the most newcomer investors appear to be the next the mots successful investors. This is due to the fact the casino industry had a rapid growth within the year and the investors that have invested quite a valid amount of money in the sector.
We can especially highlight the dominance of the Dow and Nasdaq. Both companies have increased the value of the stock market. The Dow has seen an increase of 22.1% and Nasdaq 34.3%. Those are not the only opportunists in the industry. Many of the casino operators found their great niche in 2019 with a considerable valuation climb.
Success Of 2019 Gambling Industry
The past 12 months have been especially fruitful for the casino stock performance. The VanEck Vectors Gaming ETF, a fund consisting of 42 holdings in the gaming industry, increased in value by 24 %.
The investors, who have invested in the gambling sector have seen the huge shares increase throughout 2019. There is the distribution of the largest companies in the list of the whole industry. Within the list, the Las Vegas Sands represents the ETF’s largest percentage of net assets at nearly eight percent. Sands (NYSE: LVS) endured a turbulent 12 months, though it is greatly fluctuating in value.
MGM Resorts (NYSE: MGM), which simultaneously is the owner of the most Las Vegas casinos, managed a complex legal settlement. The settlement was a great deal for the MGM considering the with victims of the October 2017 mass shooting that took place from its Mandalay Bay property. While acknowledging the fact of a mass shooting, which can basically contribute the most to the decrease of the shares of the casino, investors who had concerns regarding staying with the casino, were at a big risk. In the end, investors won by staying with the casino giant, as shares returned a 32.7 % profit. As they say, who does not risk, does not drink champagne!
MGM Resorts is not the only one who had troubles while overcoming the year successfully. It was the hard year for the Wynn Resorts as well. Wynn Resorts managed to end the year well, in terms of public relations, stemming from its founder’s alleged sexual misconduct that was initially revealed in 2018. Since then the topic has become the headline of many news as well as the subject of discussion of many authorities. Wynn’s sexual allegations raised concerns regarding the other casino owners and chiefs. As for the Wynn, when finally sun came out again on the stormy sky, the shares rose 34.9%.
Some of the casino giants such as Ceasars entertainment also had a challenging year. Caesars Entertainment has been acquired by Eldorado Resorts in a deal that expected to be closed within the next year. The casino operators are the formerly bankrupt casino operator. Though, CZR has seen the shares nearly doubled due to the acquisition. On the other side, Eldorado’s shares also jumped up by 56%.
Not only particular casino operators have seen the whole profit of 2019, but the US regional gaming operators additionally fared well. Penn National Gaming (NASDAQ: PENN) was up 31.2 %, and Boyd Gaming (NYSE: BYD) 43 %.
Sneak Peek In 2020
One of the major states for gambling industry in Nevada. Guess why, because there is one of the major cities that operate in the gambling industry and perhaps contribute the most. But for three, China’s Macau is where they make the majority of their bread and butter.
Sands, MGM, and Wynn are all heavily invested in the world’s richest gaming hub, and analysts there are optimistic following news that the daily limit on individual payment from Macau back into mainland China is increasing from 50,000 RMB ($7,135) to 80,000 RMB ($11,416), which is approximately 30% of the income.
One of the topics that have the key importance to the development of the gaming industry is the US-China trade war. Resolving the tension between those two countries will benefit the sector a lot and will be especially good news for Macau.
Another critical development that will have a tremendous impact on casino stocks is discovering which three gaming operators will land the concessions in Japan, the market that’s expected to become either the second or third-largest in the world, behind only Macau and potentially Nevada.