As the year comes to an end, let’s take time to reflect on the most important events in the casino industry during the year. As the gambling industry adapts to new social and economic conditions, it failed in 2018 due to new developments or dramatic changes in circumstances.
Steve Wynn decided to close Wynn Resorts
He is usually considered the father of modern Las Vegas. Without the resorts he designed, such as Golden Nugget, Mirage, Treasure Island, Bellagio, Wynn and Encore, Las Vegas would be very different today. Aberdeen Mirage revolutionized the concept of a casino center and laid the foundation for the modern era of mega-destinations in the 1990s. It’s undeniable that his departure from Wynn Resorts is critical.
The Las Vegas Strip would have continued to grow in the 1990s regardless of whether Wynn built it. In addition, his absence led new resorts to favor Excalibur over Caesars Palace. Although Circus Circus Enterprises proved quite successful with Caesar’s acquisition of Donald Trump, among others, in 1995, it should be noted that ITT Inc. acquired the company in 1995. This skepticism, without general optimism, contributed greatly to Mirage’s financial performance. Although they did not target gaming as a priority, it is likely that they would have seen the opportunity to design an integrated mass and luxury center while not gaming.
It is important to understand that while Wynn’s reputation and influence in this area are different from those of the companies he runs under his name, the difference itself is significant.
It is now possible to bet on sports!
The Supreme Court’s decision to strike down PASPA, the 1992 law that prohibited other states from setting their own betting rules, was the second major step in 2017. Delaware began offering simple betting in May (previously only multiplayer games), and other states such as New Jersey, Pennsylvania, Mississippi, West Virginia and Rhode Island have also begun offering simple betting.
Although wagering has not yet impacted the absolute amount of money wagered, it already has. While West Virginia, with a population of more than 1.4 million, received nearly half of Nevada’s wagering revenue in October, Delaware, New Jersey, Mississippi and three other states (with a combined population of 14 million) increased their share of revenue. over the next month. According to the latest census, Nevada has a population of about three million people. This is obviously a very important issue, especially since there are numerous gambling opportunities in the state. In October, sports betting revenue accounted for less than 3% of Nevada’s gambling revenue. About 5% of total revenue in New Jersey can mean several things: Either it is possible to generate a higher percentage of revenue elsewhere, or it shows that betting in other markets can generate more money. Accordingly, it is not surprising why both casino companies and manufacturers have rushed into the sports betting market. Although it is not currently the majority of sales, it is on the rise, which can be a huge boon for shareholders.
The growth in the number of REITs is increasing
For this reason, real estate investment trusts (REITs) are an important part of the casino industry’s ownership structure. A REIT is a company that owns revenue-generating real estate, such as casinos, and leases it to companies that operate in the field (casino companies such as Penn National, MGM Resorts, and Caesars Entertainment). Real estate investment trusts (REITs) are the largest capital owners of U.S. gaming companies, and it is no surprise that these companies prefer to do business with REITs rather than individual investors. Penn National Gaming launched its first gaming-related real estate investment trust, Gaming and Leisure Properties Inc. in 2013. The newly formed GLPI owns most of Penn National’s assets and leases its management back to Penn, which has developed a gaming REIT plan. . Since then, GLPI has acquired casino properties previously owned by other companies and has been instrumental in restructuring the industry.
Caesars Entertainment Corporation and MGM Resorts International have filed for the following three real estate investment trusts: MGM Growth Properties, VICI and MGM Resorts Growth Properties. Both have met expectations in 2018 by acquiring additional properties (including properties managed by predecessors such as VICI’s Margaritaville in Bossier City, Louisiana) and paying monthly dividends. As for real estate investment trusts (REITs), 2018 may be a sign that they have been a fixture in the gaming community for many years.