Pinnacle Entertainment's (NASDAQ:PNK) buyout of Ameristar Casinos (UNKNOWN:ASCA.DL) appears to be a done deal, but consolidation does little to make this or any other regional gaming stock attractive to investors. Pinnacle, Ameristar, Caesars Entertainment (NASDAQ:CZR), and Penn National (NASDAQ:PENN) have all seen negative organic growth over the past year as more competition outstrips demand. The Motley Fool's gaming analyst covers the red flags he sees in the industry below. 

Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.