Investors have their eyes on gaming and casino companies for 2024. Major players like MGM Resorts, Las Vegas Sands, Wynn Resorts, PENN Entertainment, DraftKings, and Caesars Entertainment stand out in particular.
The casino industry expects a fast growth rate of around 12.0% per year until 2030. Online gaming popularity is driving this surge.
Gamblers worldwide are eager to bet online and in person. This market aims for $744.76 billion by 2028, showing rapid expansion. However, regulatory changes keep the industry alert about what’s allowed and where.
Overview of Key Casino Stocks for 2024
If you are curious about the major casino stocks for 2024 We have some big names making waves, potentially worth considering for your portfolio.
MGM Resorts (NYSE: MGM)
MGM Resorts is making big moves in the casino world, with its hands in Las Vegas, Macau, and all over the U.S. They’re not just about flashy lights and roulette wheels, they’ve also jumped into online gaming, catching eyes everywhere.
In early 2024, MGM China threw some impressive numbers on the board with record gaming revenues. It’s like they hit the jackpot without even pulling a lever.
DraftKings (NASDAQ: DKNG)
Shifting the focus from MGM Resorts to DraftKings, one can see a vivid picture of growth and potential. DraftKings has been making waves in the online gambling world. Its journey includes a major move with the $1.5 billion acquisition of Golden Nugget Online in August 2021, showing its hunger for expansion and dominance in the industry.
DraftKings has seen an impressive uptick in monthly active users—jumping 40% year over year in Q3 2023 to reach 2.3 million.
This increase is not just numbers, it reflects a growing trust and interest from users across the board. Further solidifying this growth trajectory, Goldman Sachs still rates DKNG as a buy even after it dipped below a key moving average—a testament to its stock’s resilience and promise.
Caesars Entertainment (NASDAQ: CZR)
Caesars Entertainment is doing well in the casino industry. Their shares trade on NASDAQ under the symbol “CZR.” In early 2024, they shared strong numbers. Their net revenue was $2,825 and their casino operating expenses were $866 for the year ending in 2023.
Adding to their success, Caesars Virginia secured a $425 million bank financing deal for five years starting in the first quarter of 2024. This shows confidence and signals growth and stability in their operations. Their financial results released after the market closed on April 30, 2024, showed how well they are performing.
PENN Entertainment (NASDAQ: PENN)
Moving from Caesars Entertainment, another casino stock to watch in 2024 is PENN Entertainment. This company operates casinos on land, racetracks, and online gambling sites.
They had a wild ride financially, pulling in a cool $66.5 million from investments early in the year. Yet they hit a snag, flipping from a hefty profit to facing losses nearing $115 million.
PENN’s mix into the scene includes grabbing a slice of Barstool and making waves with its youthful vibe and massive following. Plus, their handshake deal with Wynn spells out big plans for strategic teamwork across the gaming universe.
Factors Influencing Casino Stocks in 2024
Casino stocks in 2024 will do well or poorly based on different things. Rules about gambling may change and the economy could get better or worse. New technology may impact how people gamble. What people want from casinos may also shift. Knowing these different factors is important for investors looking at casino companies.
Market Trends
Market trends in the casino industry show a big swing toward online platforms. People all over the world are playing games from their homes more than ever. This shift has made companies that offer online gambling very popular.
At the same time, traditional casinos haven’t lost their charm. Travelers and fun-seekers still love visiting these places for a good time. But here’s something interesting – even these old-school spots are going digital by adding online elements to their offerings.
Regulatory Changes
Rules and laws related to casinos can impact stock prices. When lawmakers change regulations, it affects the whole industry. For instance, allowing online betting or building new casinos may cause stock prices to rise or fall based on investors’ expectations.
It’s like a strategic game where every move matters. If a state allows online gaming, companies running these websites may see their stocks increase. However, places with only physical casinos might not benefit if they don’t offer online gambling.
The discussions around legalizing online gambling are also creating interest. Investors are closely watching because changes can lead to opportunities to make or lose money.
To conclude
If you are thinking about investing in casino stocks for 2024, you’re considering an industry where gaming is a serious business. Companies like MGM Resorts and Caesars Entertainment are leading the way, offering a blend of traditional charm and digital excitement for investors.
The buzz around online gambling investments indicates significant potential for the tech-savvy side of casinos. Even though there have been recent dips, analysts are still optimistic, suggesting it might be a good time to take a long-term approach with these stocks.
