The casino sector is one part of the broader gaming industry focused on leisure and resort properties and casino gaming activities. Companies in the sector own and operate casinos, resorts, hotels, ski facilities, and racetracks in various locations worldwide. The sector also includes companies involved in online gambling. Big-name casino companies in the sector include Las Vegas Sands Corp. (LVS), Wynn Resorts Ltd. (WYNN), and MGM Resorts International (MGM). Many companies with large physical casinos experienced dramatic declines in revenue and earnings earlier this year due to the COVID-19 pandemic, having to shut down properties in response to the health crisis. They recently have been in the process of reopening. Online gambling, however, has surged as rising numbers of consumers choose to shelter at home.
The performance of the casino sector can be gauged by the VanEck Vectors Gaming ETF (BJK), which includes both traditional casino companies and online gambling stocks. BJK has underperformed the broader market, providing investors with a total return of 16.0% over the past 12 months, below the Russell 1000's total return of 22.0%. All statistics throughout are as of December 3.
Here are the top 3 casino stocks with the best value, growth, and most momentum.
Best Value Casino Stocks
These are the casino stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated.
|Best Value Casino Stocks|
|Price ($)||Market Cap ($B)||12-Month Trailing P/E Ratio|
|MGM Resorts International (MGM)||29.35||14.5||10.5|
|Monarch Casino & Resort Inc. (MCRI)||52.50||1.0||68.2|
|Hilton Grand Vacations Inc. (HGV)||27.85||2.4||99.5|
- MGM Resorts International: MGM is a holding company that, through its subsidiaries, owns and operates casino resorts. The company's resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities. On December 4, MGM announced that its sports betting and digital gaming entertainment subsidiary, BetMGM, launched an online casino in Pennsylvania. The announcement came shortly after BetMGM was introduced as the first Gaming Partner of the Pittsburgh Steelers.
- Monarch Casino & Resort Inc.: Monarch Casino & Resort owns and operates a casino resort in Reno, Nevada through a subsidiary. Besides the casino, the resort includes a hotel and motor lounge, restaurants and bars, a health club, family entertainment, and other services. For Q3 2020, Monarch reported a 9% increase in gaming revenue year-over-year (YOY) as net income increased 15.2% YOY. Co-Chairman and CEO John Farahi said that net revenue, however, fell 8.7% during the quarter due primarily to capacity limitations due to COVID-19, particularly in the areas of services and amenities.
- Hilton Grand Vacations Inc.: Hilton Grand Vacations operates manager timeshare resorts. The company markets and sells vacation ownership intervals, manages resorts in leisure and urban destinations, and operates a points-based vacation club. It offers services in North America, Europe, and the Asia Pacific.
Fastest Growing Casino Stocks
These are the casino stocks with the highest YOY earnings per share (EPS) growth for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money that it can reinvest or return to shareholders.
|Fastest Growing Casino Stocks|
|Price ($)||Market Cap ($B)||EPS Growth (%)|
|Penn National Gaming Inc. (PENN)||71.84||11.2||144.7|
|Ballys Corp. (BALY)||44.11||1.3||22.2|
|Monarch Casino & Resort Inc. (MCRI)||52.50||1.0||14.0|
- Penn National Gaming Inc.: Penn National Gaming owns and manages casinos and racing facilities. Some of its properties include Hollywood Casino at Penn National Race Course, Tropicana Las Vegas, and Prairie State Gaming. For Q3 2020, the company reported a 16.6% YOY decline in revenue and a 223.1% YOY increase in net income. The surge in net income was partly driven by a tax benefit of $14.3 million compared with an income tax expense of $19.6 million in Q3 2019.
- Ballys Corp.: Bally's is a holding company that, through subsidiaries, owns and manages hotel and casino properties across the U.S. On November 18, the company announced a partnership with Sinclair Broadcast Group Inc. (SBGI). The partnership will combine Bally's sports betting content and technology with Sinclair's 190 television stations, including regional sports networks, that Sinclair operates across 88 markets.
- Monarch Casino & Resort Inc.: See company description above.
Casino Stocks with the Most Momentum
These are the casino stocks that had the highest total return over the last 12 months.
|Casino Stocks with the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Total Return (%)|
|Penn National Gaming Inc. (PENN)||71.84||11.2||207.7|
|Ballys Corp. (BALY)||44.11||1.3||85.4|
|Boyd Gaming Corp. (BYD)||39.03||4.4||33.7|
|VanEck Vectors Gaming ETF (BJK)||N/A||N/A||16.0|
- Penn National Gaming Inc.: See company description above.
- Ballys Corp.: See company description above.
- Boyd Gaming Corp.: Boyd Gaming owns and operates gaming and entertainment properties. It manages a variety of different types of casinos, including land-based, dockside riverboat, and barge-based casinos. It also owns hotels, breweries, resorts, and spas.
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Wall Street Journal. "Online Betting Is On a Roll. Time to Cash In Some Chips." Accessed Dec. 7, 2020.
YCharts. "Financial Data." Accessed Dec. 5, 2020.
MGM Resorts International. "BetMGM Launches Online Casino Gaming in Pennsylvania." Accessed Dec. 5, 2020.
Monarch Casino & Resort Inc. "Monarch Casino & Resort Reports Third Quarter 2020 Financial Results." Accessed Dec. 5, 2020.
Penn National Gaming Inc. "Penn National Gaming Reports Third Quarter Revenues of $1.13 Billion, Net Income of $141.2 Million, Adjusted EBITDAR of $452.6 Million, and Adjusted EBITDA of $343.6 Million." Accessed Dec. 5, 2020.
Ballys Corp. "Bally's And Sinclair Broadcast Group Announce Transformational Long-Term Sports Betting And iGaming Strategic Partnership." Accessed Dec. 5, 2020.