Now that the year is drawing to a close, it’s a good moment to pause and consider the biggest happenings in the casino industry. In 2018, the gambling industry collapsed due to new advancements or drastically altered circumstances adapting to changing social and economic constraints.
By his own decision, Wynn Resorts was shut down by Steve Wynn.
He is often the “father” of Las Vegas’ present incarnation. A completely different Las Vegas might exist today if Steve Wynn hadn’t built the Golden Nugget, the Wynn and the Encore. In the 1990s, the concept of a casino centre was revolutionised by Aberdeen Mirage, which laid the groundwork for the present era of mega-destinations. His exit from Wynn Resorts is unquestionably critical.
Even if Wynn had not created the Las Vegas Strip, it would have continued to flourish in the 1990s. His absence also weakened Caesars Palace’s dominance in the casino industry. As Caesar purchased Donald Trump, among others, in 1995, it should be recalled that ITT Inc. acquired circus Circus Enterprises at the same time. Mirage’s financial performance was considerably aided by this pessimism rather than a broad sense of confidence. It’s possible they would have spotted an opportunity to construct a mass and luxury centre even if they didn’t prioritise gaming.
While Wynn’s reputation and influence in this field are distinct from those of the companies he owns, the difference is substantial.
Betting on sports is finally a reality.
The Supreme Court decided to overturn PASPA, a 1992 legislation that banned other states from creating their betting laws, the second important development of 2017. In May, the state of Delaware began providing simple betting (before only multi-player games were available), and other states have since followed suit.
To yet, wagering has not affected the total amount of money wagered. Nevada’s wagering money was split roughly 50/50 between West Virginia and five other states with a combined population of 14 million in October. Those five jurisdictions enjoyed an increase in revenue over the next month. According to the most recent census, the state of Nevada has a population of roughly three million people. This is unquestionably a pressing issue, given the abundance of gambling establishments in the form. Nevada’s gambling income from sports betting was less than 3% in October. Approximately 5% of New Jersey’s overall revenue might mean various things: A bigger payment percentage can be generated elsewhere, or it shows that betting on other markets can yield more money. Casinos and manufacturers have hurried to get into the sports betting sector because of this. Shareholders stand to gain greatly from this trend, even if it doesn’t yet account for the vast bulk of sales.
The number of real estate investment trusts (REITs) is expanding.
The casino industry’s ownership structure includes a significant amount of REITs. Revenue-producing real estate, such as casinos, is owned by a REIT, which leases it to other enterprises in the same industry (casino companies such as Penn National, MGM Resorts, and Caesars Entertainment). Investors prefer to conduct business through REITs rather than individual investors because REITs are the major shareholders in U.S. gaming companies. In 2013, Penn National Gaming’s Gaming and Leisure Properties Inc. became the first gaming-related real estate investment trust. As a result of GLPI’s acquisition of Penn National’s assets, Penn has devised an investment strategy for a gaming REIT. GLPI has since bought several other companies’ gambling assets, a key player in the casino industry’s restructuring.
MGM Growth Properties, VICI, and MGM Resorts Growth Properties are the three real estate investment trusts for which Caesars Entertainment Corporation and MGM Resorts International have applied. Both exceeded expectations in 2018 by acquiring additional properties (including assets operated by predecessor companies like VICI’S Margaritaville in Louisiana) and distributing monthly dividends to shareholders. For REITs, 2018 might signify that they’ve been around for a long time in the gaming industry.