Top Casino Stocks

MGM is top for value and growth while LVS is top for performance

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., Wynn Resorts Ltd., and MGM Resorts International.

The COVID-19 pandemic and related restrictions have had an adverse impact on many companies within the casino sector. However, the industry is has bounced back sharply as restrictions have eased. Gambling revenue across the Las Vegas Strip for H1 2022 was 36% higher than the first half 2021 and even higher than the first half of 2019, before the start of the pandemic.

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., an online sports betting company. BJK has vastly underperformed the broader market, providing investors with a total return of -28.6% compared to the -13.8% total return of the Russell 1000 Index over the past 12 months. These market performance numbers and all statistics in the tables below are as of Sept. 16, 2022.

Here are the top three casino stocks with the best value, fastest growth, and best performance.

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 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
MGM Resorts International (MGM) 33.36 13.1 4.7
Boyd Gaming Corp. (BYD) 51.85 5.5 10.5
Red Rock Resorts Inc. (RRR) 38.64 2.3 10.7

Source: YCharts

  • MGM Resorts International: MGM Resorts International is a global entertainment company. It owns and operates hotels and casinos, and meeting and conference spaces. The company also provides theatrical entertainment, restaurants, nightlife, and a range of retail offerings. MGM reported Q2 2022 earnings on Aug. 3. Net income soared to $1.8 billion, including a gain from the deconsolidation of MGM Growth Properties LLC. Revenue climbed by 44% year-over-year (YOY).
  • 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. On Sept. 15, the company announced a quarterly cash dividend of $0.15 per share. The dividend is payable Oct. 15 to shareholders as of Sept. 30, 2022.
  • Red Rock Resorts Inc.: Red Rock Resorts is a gaming, development, and management company that owns and manages casino and entertainment properties. Besides casino gaming, it also provides entertainment venues, movie theaters, bowling, and banquet spaces.

Fastest Growing Casino Stocks

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.

Fastest Growing Casino Stocks
  Price ($) Market Cap ($B) EPS Growth (%) Revenue Growth (%)
MGM Resorts International (MGM) 33.36 13.1 2,900 44.0
Hilton Grand Vacations Inc. (HGV) 38.67 4.6 500.0 183.8
Marriott Vacations Worldwide Corp. (VAC) 141.53 5.6 1,880 18.9

Source: YCharts

  • MGM Resorts International: See above for company description.
  • Hilton Grand Vacations Inc.: Hilton Grand Vacations is a global timeshare company. The company develops and operates a system of brand-name vacation ownership resorts in a range of vacation destinations, including Las Vegas. Hilton Grand Vacations reported Q2 2022 earnings on Aug. 9. Net income climbed by more than eight-fold as revenue nearly tripled YOY. Both the company's Real Estate Sales and Financing segment and Resort Operations and Club Management segment saw significant growth over this period.
  • Marriott Vacations Worldwide Corp.: Marriott Vacations Worldwide is a global vacation company offering vacation ownership, rentals, resort and property management, and related services. It provides more than 120 vacation ownership resorts around the world. Marriott announced on Sept. 9 that it would pay a quarterly cash dividend of $0.62 per share of common stock. The dividend is payable on Oct. 6 to shareholders as of Sept. 22, 2022.

Casino Stocks with the Best Performance

These are the casino stocks that had the best returns or smallest declines in total return over the past 12 months out of the companies we looked at.

Casino Stocks with the Best Performance
  Price ($) Market Cap ($B) 12-Month Trailing Total Return (%)
Las Vegas Sands Corp. (LVS) 38.64 29.5 3.0
Marriott Vacations Worldwide Corp. (VAC) 141.53 5.6 -6.8
Red Rock Resorts Inc. (RRR) 38.64 2.3 -10.3
Russell 1000 N/A N/A -13.8
VanEck Gaming ETF (BJK) N/A N/A -28.6

Source: YCharts

  • Las Vegas Sands Corp: Las Vegas Sands is a developer and operator of integrated resort properties. Its portfolio of properties include the Marina Bay Sands, The Venetian Macao, Sands Macao, and more. On Sept. 14, the company announced it had submitted, through its Sands China group, an application for a new 10-year gaming concession in Macao.
  • Marriott Vacations Worldwide Corp.: See above for company description.
  • Red Rock Resorts Inc.: See above for company description.

Trends in Casino Stocks

The global gambling market is expanding rapidly. It was valued at more than $61 billion in 2021 and is estimated to grow to $114 billion by 2028. This represents a compound annual growth rate (CAGR) of close to 11% during the intervening seven years. One of the most prominent growth catalysts for the industry is the Asia-Pacific region, which is predicted to increase the use of internet services and is loosening the rules governing online betting and gambling.

Demand for digital gambling is being driven by the increasing adoption of smartphones, developments in internet technology, and the increased spending power of individuals, among other factors. In addition, online gambling software vendors will spend heavily on new technology to improve the user experience. The online gambling sector is also predicted to profit from a rise in female casino patronage, as well as the convenience of using cashless methods of payment. The industry's growth is also being fueled by the advancement of new technologies such as virtual reality and blockchain.

Casino companies are also wagering on sports gambling to diversify their revenue: Since the Supreme Court legalized sports betting outside Nevada in a landmark 2018 decision, several states have allowed companies to establish both brick-and-mortar sportsbooks as well as online and mobile sports-betting apps. But that business may also not be as lucrative as the casino companies once thought, and it's also highly competitive.

Risks of Casino Stocks

Several factors have hit the casino industry hard globally. COVID-19 concerns continue to affect travel and bettor arrivals—especially in Macau, also known as Macao, the former Portuguese territory that is now a special administrative region of China and has become Asia's gambling mecca. Beijing has started cracking down on Macau casino operators, which means bad news for Wynn Resorts Ltd. (WYNN) and Las Vegas Sands, which each own properties there. Regulation is an ongoing threat to casino companies worldwide.

In the U.S., the highly competitive gaming business makes it difficult for companies to succeed, even in Las Vegas. Even MGM Resorts, the largest resort operator on the Vegas Strip, is scaling back in Las Vegas by selling its famous Mirage casino on the Vegas Strip to Hard Rock.

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  2. YCharts. “Financial Data.”


  4. Boyd Gaming Corp. "Boyd Gaming Announces Quarterly Dividend."

  5. Hilton Grand Vacations Inc. "Hilton Grand Vacations Reports Record Second Quarter 2022 Results," Pages 2, 3, 12.

  6. Marriott Vacations Worldwide Corp. "Marriott Vacations Worldwide Corporation Announces Quarterly Cash Dividend."

  7. Las Vegas Sands Corp. "Sands Submits Macao Gaming Tender Application."

  8. PR News Wire. "Recent Trends in Global Online Gambling & Betting Market Size & Share to Exceed US$ 114.4 Bilion, at 10.9% CAGR Rise by 2028 - Industry Analysis, Trends, Forecast Report by ZMR."

  9. CNN. "Casino Stocks Are Looking Like a Big Gamble."

  10. Reuters. "MGM Resorts to Sell Mirage Hotel and Casino for $1.08 Bln to Hard Rock."

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