Wynn Resorts (WYNN) announced on Tuesday that it plans to run its online gaming business in Caesars Entertainment Corp’s hotel in New Jersey.
Wynn, which does not have any casinos in New Jersey, will run its online gaming business through computers at Caesars hotel in Atlantic city. Both Caesars and Wynn will be working with 888 Holdings Plc, one of Europe’s largest online gambling operators.
Currently, Wynn owns two destination casinos:�Wynn Las Vegas and Wynn Macau. The two casinos feature roughly 186,000 and 275,000 square feet of casino gaming space, respectively.
Top 10 US Stocks To Buy Right Now: Dover Downs Gaming & Entertainment Inc (DDE)
Dover Downs Gaming & Entertainment, Inc., incorporated in December of 2001, is a premier gaming and entertainment resorts. The Company�� operations consist of: Dover Downs Casino, a 165,000-square foot casino complex featuring table games, including craps, roulette and card games, such as blackjack, Spanish 21, baccarat, 3-card and pai gow poker, the latest in slot machine offerings, multi-player electronic table games, the Crown Royal poker room, a Race & Sports Book operation, the Dover Downs' Fire & Ice Lounge, the Festival Buffet, Doc Magrogan's Oyster House, Frankie's Italian restaurant, as well as several bars, restaurants and four retail outlets; Dover Downs Hotel and Conference Center, a 500 room AAA Four Diamond hotel with a full-service spa/salon, conference, banquet, ballroom and concert hall facilities, and Dover Downs Raceway, a harness racing track with pari-mutuel wagering on live and simulcast horse races. All of its operations are located at its entertainment complex in Dover. Its two wholly owned subsidiaries include Dover Downs, Inc. and Dover Downs Gaming Management Corp.
Dover Downs Casino
The Company's casino had approximately 2,539 slot machines as of December 31, 2011. It is open for business around the clock. During the year ended December 31, 2011, that the facility was visited by approximately 2.6 million patrons. Its slot machines range from penny machines to $100 machines in the Premium Slots area and include games found in the country's major gaming jurisdictions. The Company operates with 40 tables, including blackjack, craps and roulette tables. The Crown Royal poker room has 12 poker tables. It has its Race and Sports Book operation featuring parlay sports wagering on NFL games and pari-mutuel wagering on live and simulcast horse races. Dover Downs, Inc. is authorized to conduct video lottery, sports wagering and table game operations. The Company's Capital Club, a slots players club and tracking system, allows it to identify customers and t! o reward their level of play through various marketing programs.
Dover Downs Hotel
The Company's luxury hotel facility, the Dover Downs Hotel and Conference Center, connects to the Company's casino. The facility includes 500 rooms, including 11 luxury spa suites, a multi-purpose ballroom/concert hall, a fine dining restaurant, swimming pool and a luxurious 6,000 square-foot full-service spa. It offers a range of entertainment options to its patrons, including concerts featuring prominent entertainers, live boxing, gourmet dining, spa facilities, trade shows and conferences. During 2011, hotel occupancy averaged 90%.
Dover Downs Raceway
The Company�� Dover Downs Raceway conducts live harness races from November until April and is simulcast to more than 300 tracks and other off-track betting locations across North America on each of the Company's more than 120 live race dates. The Company's harness racing track is a 5/8-mile track that is located on DVD's property and is on the inside of its one-mile motorsports superspeedway. Additional amenities include the Winners Circle Restaurant overlooking the horse racing track. Within the Company's Race & Sports Book operation is the simulcast parlor where the patrons can wager on harness and thoroughbred races received by satellite into its facility year round from numerous tracks across North America. Television monitors throughout the area provide views of all races simultaneously and the betting windows are connected to a central computer allowing bets to be received on all races from all tracks.
The Company has an agreement with the Delaware Standardbred Owner's Association, Inc. (DSOA) effective September 1, 2010 and continuing through August 31, 2014. DSOA's membership consists of owners, trainers and drivers of harness horses participating in harness race meetings at its facilities and elsewhere in the United States and Canada. Under the DSOA agreement, the Company is required to distrib! ute as pu! rses for races conducted at its facilities a percentage of its retained share of pari-mutuel revenues.
The Company competes with Harrington Raceway and Delaware Park.
Advisors' Opinion:- [By Paul Ausick]
Stocks on the move: Vodafone Group PLC (NASDAQ: VOD) is up 8.1% at $31.80 on reports of discussions with Verizon Communications Inc. (NYSE: VZ) that would result in the sale of Vodafone�� 45% stake in Verizon Wireless to the controlling shareholder. Dover Downs Gaming & Entertainment Inc. (NYSE: DDE) is up 10.8% at $1.54 after Wednesday�� launch of its online casino games that will soon be available to state residents to play for real money.
- [By Paul Ausick]
The REIT is expected to spend as much as $500 million in acquisitions in 2014, according to Barron��, and some potential acquisition targets include Isle of Capri Casinos Inc. (NASDAQ: ISLE) which has a market cap of around $323 million or Dover Downs Gaming & Entertainment Inc. (NYSE: DDE) with a market cap of around $47 million.
Top 5 Casino Stocks For 2014: Penn National Gaming Inc.(PENN)
Penn National Gaming, Inc. and its subsidiaries own and manage gaming and pari-mutuel properties in the United States. It operates approximately 27,000 gaming machines; 500 table games; and 2,000 hotel rooms in 23 facilities in 16 jurisdictions, including Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Maine, Maryland, Mississippi, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, West Virginia, and Ontario. The company was formerly known as PNRC Corp. and changed its name to Penn National Gaming, Inc. in 1994. Penn National Gaming, Inc. was founded in 1982 and is based in Wyomissing, Pennsylvania.
Advisors' Opinion:- [By Patricio Kehoe] the measures taken to balance out revenue in case of headwinds.
Valuation and Contracts
One factor that plays in this firm�� favor is NASCAR�� long-term contracts with major TV networks and radio stations. The most recent deal is set to launch in 2015, and will bind the motorsport brand for 10 years to NBC and Twenty-First Century Fox Inc. (FOX), for a total of $8.2 billion (45% annual increase over the current contract). Although a more stable economic scenario may reignite concessionary spending among customers, and cause the motorsport segment to gain popularity again, the non-existent switching costs and alternative leisure choices could be detrimental to this company. Also, ISCA�� current $87.9 million cash flow will likely be stagnated by the new Daytona Ring Project, which is expected to cost $400 million over the next five years.
Furthermore, concerns remain regarding the company�� growth metrics, especially given their downward trend. For the fourth quarter in 2013, revenue showed negative growth of 0.5%, a downfall which ISCA has not been able to stall since 2007. Operating margins have also fallen by 9% in the past two years (currently at 12.8%), in addition to the below average (2.02%) dividend yield of 0.70%. Added to a premium P/E value of 33.00x trailing earnings, compared to the industry average of 22.40x, I feel bearish about this motorsports giant�� near-term profitability and see some uncertainty in the long-term future.
Disclosure: Patricio Kehoe holds no position in any stocks mentioned.
About the author:Patricio KehoeA fundamental analyst at Lone Tree Analytics - [By Will Ashworth]
Although Penn National Gaming (PENN) completed the spinoff of its real estate assets on Nov. 1, 2013, Gaming and Leisure Properties��(GLPI) shares have traded since mid-October. The only pure-play Casino REIT was created to provide PENN shareholders with two investments: gaming and real estate. Both businesses would be able to focus on what they do best with shareholders better off as a result. I can�� argue with the rationale.
Top 5 Casino Stocks For 2014: Pinnacle Entertainment Inc.(PNK)
Pinnacle Entertainment, Inc. owns, develops, and operates casinos, and related hospitality and entertainment facilities in the United States. It operates casinos, such as L'Auberge du Lac in Lake Charles, Louisiana; River City Casino and Lumiere Place in St. Louis, Missouri; Boomtown New Orleans in New Orleans, Louisiana; Belterra Casino Resort in Vevay, Indiana; Boomtown Bossier City in Bossier City, Louisiana; and Boomtown Reno in Reno, Nevada. The company also operates River Downs racetrack in southeast Cincinnati, Ohio. As of May 26, 2011, it operated seven casinos and one racetrack. The company was formerly known as Hollywood Park, Inc. and changed its name to Pinnacle Entertainment, Inc. in February 2000. Pinnacle Entertainment, Inc. was founded in 1935 and is based in Las Vegas, Nevada.
Advisors' Opinion:- [By Travis Hoium]
What: Shares of Ameristar Casinos (NASDAQ: ASCA ) and Pinnacle Entertainment (NYSE: PNK ) fell as much as 11% today after the government brought into question the merger of the two companies.
- [By Grace L. Williams]
First up is Pinnacle Entertainment (PNK). CEO Anthony Michaal Sanfilippo bought 23,000 shares of the Las Vegas-based gaming company for $505,800. InsiderScore notes this is his first purchase in nearly two years and writes, ��fter shares retreated more than 15% from a six-year high and with an activist hedge fund pushing the casino operator to spin off its real estate into a REIT, Sanfilippo stepped up with his first purchase. [He put] a fresh $500,000 into the stock at a price two times his cost basis of previous buys.��/p>
Top 5 Casino Stocks For 2014: MGM Resorts International(MGM)
MGM Resorts International, through its subsidiaries, primarily owns and operates casino resorts in the United States. The company?s resorts offer gaming, hotel, dining, entertainment, retail, and other resort amenities. It also owns and operates golf courses and a golf club. As of December 31, 2010, the company owned and operated 15 properties located in Nevada, Mississippi, and Michigan; and has 50% investments in 4 other casino resorts in Nevada, Illinois, and Macau. In addition, MGM Resorts International has an agreement with the Mashantucket Pequot Tribal Nation, which owns and operates a casino resort in Connecticut, to carry the ?MGM Grand? brand name. The company was formerly known as MGM MIRAGE and changed its name to MGM Resorts International in June 2010. MGM Resorts International was founded in 1986 and is based in Las Vegas, Nevada.
Advisors' Opinion:- [By Paul Ausick]
U.S.-based casino operators Las Vegas Sands Inc. (NYSE: LVS), Wynn Resorts Ltd. (NASDAQ: WYNN), and MGM Resorts International (NYSE: MGM) already operate resorts and casinos in Macau and these companies would be much smaller without them.
- [By Ruben Ramirez]
The group's annual G2E Global Gaming Expo is being held this week at the Sands Expo and Convention Center in Las Vegas. The study, done by Oxford Economics, took into account everything from wagers by gamblers doubling-down to tourists buying gas, meals or tickets to a show. The numbers didn't surprise David Schwartz, director of the Gaming Research Center at the University of Nevada, Las Vegas. "I think it's an important part of telling the whole story," he said. That story, he said, includes not only casino gambling but the industry's impact as hoteliers, retailers and others. What got the gambling industry to this point isn't going to keep it thriving, though, said Geoff Freeman, the association's president. With growing competition, Freeman said the industry needs to seek regulatory changes that can help make the business more efficient and free up companies to be more innovative, he said. The industry has suffered particularly in Atlantic City, where four casinos have closed this year leaving 8,000 people out of work. Oxford Economics looked at regulatory data, federal labor statistics and surveyed casinos for the study. It included spending and revenue in the report that might be linked but not directly connected to a casino. James Murren, CEO and chairman of MGM Resorts International (MGM) , told a G2E conference crowd that 70 percent of his company's Las Vegas revenue comes from non-gambling sources, including 7 million tickets sold for entertainment performances last year. "Non-gaming has exploded for us," he said. G2E is a trade show and conference where new slot machine designs, wagering technology, and food and beverage concepts often debut. The show has attracted 26,000 attendees in past years.
- [By Vanina Egea]
Sand Corp�� successful resort operations have not only assigned it a narrow moat rating, but also positively positions the firm to receive casino licenses in countries like Japan, Taiwan and South Korea, where gambling will be legalized in the near future. In fact, the company benefits from its market share in the Singapore duopoly, through the Marina Bay Sands resort venue. With 34% gaming taxes, compared to Macao�� 39%, the Singapore operation is the company�� fastest growing business segment, and will continue to drive excessive EBITDA margins of 53.6% until 2018, when the casino license expires. Additionally, the firm�� market share in Asia sets it apart from competitors like MGM Resorts International (MGM) or Monarch Casino & Resort Inc. (MCRI)
- [By Sean Williams]
The other knock against the sector is merely that it's cyclical and prone to downswings ��especially for the casino operators relying heavily on the currently stagnant U.S. market. MGM Grand (NYSE: MGM ) is an example of a casino operator that's expanded into Macau but still derives the majority of its business from the United States. Unsurprisingly, it hasn't turned an annual profit since 2007 and isn't expected to until at least 2015.
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