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).
The COVID-19 pandemic and related restrictions have had an adverse impact on many companies within the casino sector. While business began to rebound in 2021 with the easing of restrictions and rollout of vaccines, the fast-spreading Omicron variant of the coronavirus continues to pose a threat to full recovery.
The VanEck Gaming ETF (BJK), an exchange-traded fund, is used as a benchmark to gauge the performance of the casino industry. However, investors should note that it includes non-casino gambling stocks that have different investment characteristics, such as DraftKings Inc. (DKNG), an online sports betting company.
BJK has underperformed the broader market, providing investors with zero-percent total return compared to the 30.9% total return of the Russell 1000 Index over the past 12 months.
Here are the top three casino stocks with the best value, fastest growth, and most momentum. The market performance numbers above and statistics in the tables below are as of Jan. 3, 2022.
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 that you’re paying less for each dollar of profit generated.
|Best Value Casino Stocks|
|Price ($)||Market Capitalization (Market Cap) ($B)||12-Month Trailing P/E Ratio|
|Golden Entertainment Inc. (GDEN)||50.73||1.5||13.1|
|Bluegreen Vacations Holding Corp. (BVH)||35.10||0.7||13.5|
|Century Casinos Inc. (CNTY)||12.38||0.4||16.5|
- Golden Entertainment Inc.: Golden Entertainment is a diversified gaming company. It owns and operates resorts and casinos, pubs and taverns, and distributed gaming. In early November 2021, the company announced financial results for the third quarter (Q3) of its 2021 fiscal year (FY), the three-month period ended Sept. 30, 2021. Golden Entertainment posted net income of $29.1 million compared to a net loss of $7.0 million in the year-ago quarter. Revenue rose 37.5% year over year (YOY).
- Bluegreen Vacations Holding Corp.: Bluegreen Vacations is a vacation ownership company. It sells vacation ownership interests and manages resorts in popular leisure and urban destinations. In early November 2021, the company announced financial results for Q3 FY 2021, ended Sept. 30, 2021. Bluegreen Vacations reported net income of $27.3 million, a significant turnaround from the net loss of $22.5 million reported in the year-ago quarter. Revenue expanded 48.7% YOY. The company said that it is also facing challenges related to labor availability.
- Century Casinos Inc.: Century Casinos is a casino entertainment company that operates casinos, racetracks, hotels, restaurants, bars, showrooms, event venues, a comedy club, a bowling alley, a golf course, and more.
These are the top casino stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly YOY percentage revenue growth and most recent quarterly YOY earnings-per-share (EPS) growth. Both sales and earnings are critical factors in the success of a company. Therefore, ranking companies by only one growth metric makes a ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or restructuring costs) that may make one figure or the other unrepresentative of the business in general. Companies with quarterly EPS or revenue growth of more than 2,500% were excluded as outliers.
|Fastest-Growing Casino Stocks|
|Price ($)||Market Cap ($B)||EPS Growth (%)||Revenue Growth (%)|
|Boyd Gaming Corp. (BYD)||64.93||7.3||266.7||29.3|
|Playa Hotels & Resorts N.V. (PLYA)||8.08||1.3||N/A (see company description)||426.5|
|Hilton Grand Vacations Inc. (HGV)||52.33||6.3||N/A (see company description)||346.2|
- Boyd Gaming Corp.: Boyd Gaming owns and operates gaming properties throughout the U.S. It also operates entertainment, restaurants, shopping, and recreational facilities on its properties.
- Playa Hotels & Resorts N.V.: Playa Hotels & Resorts is a Netherlands-based owner, operator, and developer of resorts in prime beachfront locations in popular vacation destinations throughout Mexico and the Caribbean. In early November 2021, the company announced financial results for Q3 FY 2021, ended Sept. 30, 2021. Playa’s net loss narrowed significantly to $12.4 million from $78.6 million in the year-ago quarter. Revenue increased more than fivefold. Because the company’s EPS was negative, an EPS growth rate for the table above could not be calculated.
- Hilton Grand Vacations Inc.: Hilton Grand Vacations develops and operates upscale vacation ownership properties in prime locations throughout the U.S., Europe, and the Asia-Pacific region. An EPS growth rate for the company could not be calculated for the table above since the company’s EPS went from negative in the year-ago quarter to positive in the most recent quarter.
These are the casino stocks that had the highest total return over the last 12 months.
|Casino Stocks with the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Total Return (%)|
|Full House Resorts Inc. (FLL)||11.82||0.4||200.8|
|Bluegreen Vacations Holding Corp. (BVH)||35.10||0.7||159.4|
|Golden Entertainment Inc. (GDEN)||50.73||1.5||155.1|
|VanEck Gaming ETF (BJK)||N/A||N/A||0.0|
- Full House Resorts Inc.: Full House Resorts develops, owns, operates, and manages casinos and related hospitality and entertainment facilities in a number of regional U.S. markets. In early November 2021, the company announced financial results for Q3 FY 2021, ended Sept. 30, 2021. Net income fell 40.1% YOY despite revenue rising 12.6% YOY. A much larger interest expense in the most recent quarter compared to the year-ago quarter weighed on net income.
- Bluegreen Vacations Holding Corp.: See above for company description.
- Golden Entertainment Inc.: See above for company description.
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U.S. Centers for Disease Control and Prevention. “Omicron Variant: What You Need to Know.” Accessed Jan. 4, 2022.
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Bluegreen Vacations Holding, Investor Relations. “Bluegreen Vacations Reports Financial Results for Third Quarter 2021.” Accessed Jan. 4, 2022.
Century Casinos, Investor Relations, Press Releases. “Century Casinos, Inc. Announces Third Quarter 2021 Results.” Accessed Jan. 4, 2022.
Boyd Gaming, Investor Relations, Company News. “Boyd Gaming Reports Third-Quarter 2021 Results.” Accessed Jan. 4, 2022.
Playa Hotels & Resorts, Investors, News Releases. “Playa Hotels & Resorts N.V. Reports Third Quarter 2021 Results.” Accessed Jan. 4, 2022.
Hilton Grand Vacations, News and Media. “Hilton Grand Vacations Reports Record Third Quarter 2021 Results.” Accessed Jan. 4, 2022.
Full House Resorts, Investor Relations, News & Events, Press Releases. “Full House Resorts Announces Strong Third Quarter Results.” Accessed Jan. 4, 2022.