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 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 have experienced dramatic declines in revenue and earnings over the past year due to the COVID-19 pandemic, having to shut down properties in response to the health crisis. Online gambling, however, has surged as rising numbers of consumers shelter at home.

Casino stocks, represented by the VanEck Vectors Gaming ETF (BJK), have outperformed the broader market. BJK has provided investors with a total return of 53.6%, above the Russell 1000's total return of 33.4% over the past 12 months. These market performance numbers and the statistics in the tables below are as of March 8, 2021.

Here are the top 3 casino stocks with the best value, fastest 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
Monarch Casino & Resort Inc. ( MCRI) 63.09 1.2 50.9
Entain PLC ( GMVHY) 19.43 11.4 149.3
Vail Resorts Inc. ( MTN) 315.76 12.7 277.0

Source: YCharts

  • Monarch Casino & Resort Inc.: Monarch Casino & Resort owns and operates a tropically-themed casino resort in Reno, Nevada. The resort features a casino, a hotel and motor lounge, restaurants, bars, a nightclub, a swimming pool, a health club, a gift shop, and more. The company also owns a casino resort in Colorado.
  • Entain PLC: Entain is a British sports betting and gambling company that operates in the online and retail sector. Its brands include bwin, Coral, Ladbrokes, partypoker, and Sportingbet. The company recently announced that it had received regulatory approval regarding its public cash offer to purchase Enlabs AB, a Swedish online gaming company. The SEK2.8 billion ($0.3 billion based on SEK/USD exchange rate on March 9, 2021) offer was originally made on January 7, 2021.
  • Vail Resorts Inc.: Vail Resorts operates 37 resorts in the U.S. and several other countries. Its resorts include ski mountain complexes, family-oriented mountain resorts, destination resorts with apres-ski activities, and year-round family vacation destinations.

Fastest Growing Casino Stocks

These are the casino stocks with the highest year-over-year (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 (%)
Red Rock Resorts Inc. ( RRR) 32.12 3.8 680.0
Boyd Gaming Corp. ( BYD) 60.97 6.8 265.0
Monarch Casino & Resort Inc. (MCRI) 63.09 1.2 142.4

Source: YCharts

  • Red Rock Resorts Inc.: Red Rock Resorts operates as a gaming, development, and management company. It owns and manages casino and entertainment properties, including restaurants, movie theaters, bowling, casino gaming, and more. The company announced in early February financial results for its 2020 fiscal year (FY), which ended December 31, 2020. Red Rock reported an annual net loss of $174.5 million as net revenue for the year fell 36.3%. The company said that the net loss and revenue decline was primarily due to the impact of the pandemic.
  • Boyd Gaming Corp.: Boyd Gaming owns and operates a number of gaming properties. It also operates entertainment, restaurants, shopping, and recreational facilities on its properties.
  • Monarch Casino & Resort Inc.: See above for company description.

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) 109.28 17.1 357.0
Bally's Corp. ( BALY) 64.64 2.0 185.0
Caesars Entertainment Inc. ( CZR) 95.07 19.8 182.5
Russell 1000 N/A N/A 33.4
VanEck Vectors Gaming ETF (BJK) N/A N/A 53.6

Source: YCharts

  • Penn National Gaming Inc.: Penn National Gaming is a major owner and operator nationwide of casino, gaming, and racing operations, with a major focus on slot machine entertainment. The company announced in early January that Chief Financial Officer (CFO) David Williams had stepped down as of December 31, 2020. Felicia Hendrix, who has 20 years of experience as a gaming industry analyst, was named executive vice president and CFO.
  • Bally's Corp.: Bally's owns and manages hotels offering amenities such as casinos, retail outlets, sports bars, pubs, dining, and accommodation. The company announced in early February that it is acquiring SportCaller, a B2B free-to-play (F2P) game provider for sports betting and media companies. The acquisition is expected to enable Bally's to launch a suite of F2P games this year. Financial terms were not disclosed.
  • Caesars Entertainment Inc.: Caesars Entertainment owns and operates a chain of resorts. It offers casino, poker, roulette, and other gaming facilities. The company also provides food and beverage services.

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