Gambling Stock Roundup: MGM to Acquire The Cosmopolitan of Las Vegas, WYNN's WynnBET Expands & More
Apprehensions regarding the coronavirus pandemic and reports of tougher Macau casino regulations continue to plague the Gaming industry. In the past week, the industry has decreased 0.6%. In the last one month, the industry has witnessed a decline of 5.2%.
Recap of Last Week’s Most Important Stories
MGM Resorts to Acquire The Cosmopolitan of Las Vegas
MGM Resorts International MGM recently entered into a definitive agreement with Blackstone to acquire the hotel operations of The Cosmopolitan of Las Vegas for $1.625 billion. The transaction, which is subject to regulatory approvals, is likely to close in the first half of 2022.
Previously, The Cosmopolitan of Las Vegas was acquired by Blackstone in 2014. Since then, it has gone through significant capital improvements, which have generated a unique customer base and high-quality product offerings. Although the property encountered pandemic-induced closures in-between, Blackstone revealed that The Cosmopolitan of Las Vegas’ performance in second-quarter 2021 exceeded pre-COVID levels.
MGM Resorts currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Wynn Resorts' WynnBET Gets Louisiana Approval, Broadens Presence
Wynn Resorts, Limited’s WYNN WynnBET announced that it recently received an approval to operate in Louisiana. This marks the 17th state of its online gaming footprint expansion.
In addition to Louisiana, WynnBET is currently operating in Arizona, Colorado, Indiana, Michigan, New Jersey, Tennessee and Virginia. The company has significant market presence in 17 states, covering almost 46% of the U.S. population. It is in the process of entering seven more states, which would broaden WynnBET’s footprint to nearly 77% of the U.S. adult population.
Wynn Resorts currently carries a Zacks Rank #3.
International Game Technology’s PlaySports Expands Footprint
International Game Technology PLC IGT recently announced that its PlaySports platform will now be available at Angel Of The Winds Casino Resort in Arlington, WA for sports betting. The casino will leverage IGT's PlaySports turnkey solution for retail and on-premise mobile sports betting.
Enrico Drago, IGT CEO Digital & Betting said, “Our proven all-in-one PlaySports technology was designed to offer maximum flexibility for operators of all sizes to seamlessly establish exciting sports betting programs.”
International Game Technology has a Zacks Rank #3.
Churchill Downs Announces Share Repurchase Program
Churchill Downs Incorporated’s CHDN board of directors have declared a $500 million share repurchase program. This new program has replaced the company’s previously authorized repurchase worth $300 million, which was declared in October 2018. The company had unused authorization of $97.9 million as of Sep 29, 2021 from the $300 million repurchase program.
Bill Carstanjen, CEO of Churchill Downs said, “We are excited about the future growth potential for each of our businesses and remain committed to creating long-term shareholder return through our unique pipeline of organic investments, accretive transactions, share repurchases, and annual dividends.”
Churchill Downs carries a Zacks Rank #2 (Buy).
Price Performance
The following table shows the price movement of the major gambling stocks in the last week and the last six months:
Image Source: Zacks Investment Research
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International Game Technology (IGT) : Free Stock Analysis Report
Wynn Resorts, Limited (WYNN) : Free Stock Analysis Report
MGM Resorts International (MGM) : Free Stock Analysis Report
Churchill Downs, Incorporated (CHDN) : Free Stock Analysis Report
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