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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.

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  • Report this Comment On March 26, 2015, at 10:51 AM, rexbuttrey wrote:

    all these gaming stocks needs to remember that they have to have some wines to have losers meaning I shoot craps have been for 25 years haven't changed my way of betting or anything it used to be that occasionally someone around the table would get hot with the dice ane everyone would make some money now if one person gets on a good roll and the table has to pay out 3 or 4 thousand dollars as soon as that player craps out they change the dice and for hours the most rolls anyone will mAKE is about 3 or 4 rolls and seven out it don't take a rocket scientists to figure out that somethings wrong with the dice or the table and people are starting to figure that out they are not going to stand there and keep throwing 100 dollar bills down just to see someone crap out after 3 or 4 rolls they don't have to cheat to make lots of money at the crap tables there are so many ignorant players that don't have a clue how to shoot craps but they cant stand it if 1 person around the table has a good roll sameway with the slots they've tightened up so very few win anything anymore their greed is going to put them completely out of business you've got to have wibnners to have losers

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Travis Hoium

Travis Hoium has been writing for since July 2010 and covers the solar industry, renewable energy, and gaming stocks among other things.

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