Why Regional Gaming Will Continue to Flounder

Regional casino operators have had a rough go of it in recent years. A recession hit when companies were highly leveraged, leading to a few bankruptcies, and those companies that survived are now fighting an expansion of gaming across the country. States that also felt the pinch of budget deficits saw gaming as a way to increase revenue, and Massachusetts, Pennsylvania, and New York are just a few of the states to expand gaming. 

The result has been fast-falling revenue in former hot spots like Atlantic City, and dropping profits, as well. Boyd Gaming (NYSE: BYD  ) and Caesars Entertainment (NASDAQ: CZR  ) have been two of the hardest hit despite their exposure to Las Vegas. Pinnacle Entertainment (NYSE: PNK  ) increased its exposure to regional markets with the acquisition of Ameristar Casinos, but is still losing money each quarter. 

Penn National (NASDAQ: PENN  )  has done fairly well on the market, but that's primarily because it pushed real estate assets into a REIT. At the end of the day, operations are still struggling for Penn, too. 

If you're going to invest in gaming, bet on companies that have international exposure in Asia, where Macau is now the world's largest gaming market, and Singapore is providing incredible profits. For more details on the regional situation, watch the video below.

Take a look at dividends for value
Stocks with lots of growth potential are fun to follow, but the smartest investors know that dividend stocks simply crush their non-dividend-paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3026501, ~/Articles/ArticleHandler.aspx, 10/21/2014 11:32:57 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement