Performance of gaming stocks was disappointing over the past week with the industry declining 2.3% and the S&P 500 Index losing 1%. The trade war between Beijing and Washington is the primary reason behind the lacklustre performance. Moreover, the flagging China property price has adversely impacted the high-end VIP segment.
Recap of Last Week’s Most Important Stories
Century Casinos Receives Go-Ahead for Mountaineer Casino Acquisition
Century Casinos, Inc. CNTY has received green signal from the West Virginia Lottery Commission for the acquisition of Mountaineer Casino, Racetrack and Resort (“Mountaineer”) from Eldorado Resorts, Inc. Th deal, which is likely to be sealed in early 2020, is yet to receive approval from Missouri Gaming Commission.
In June, Century Casinos had entered into an agreement with Eldorado Resorts to acquire the operations of operations of Isle Casino Cape Girardeau (“Cape Girardeau”), Lady Luck Caruthersville (“Caruthersville”) and Mountaineer Casino, Racetrack and Resort (“Mountaineer”) for nearly $107 million.
Century Casinos has a Zacks Rank #5 (Strong Sell).
Caesars Entertainment & Wyndham Destinations Extend Marketing Partnership
Caesars Entertainment Corporation CZR and Wyndham Destinations, Inc. WYND have extended their marketing partnership to 2030. Per the agreement, Wyndham Destinations can use Caesars Entertainment’s larger customer base to market its market vacation ownership. Moreover, Wyndham Destinations will purchase room nights and other products from Caesars Entertainment for its customers.
Executive vice president and chief marketing officer for Caesars Entertainment, Chris Holdren, said “This partnership further exudes our desire and commitment to elevate our guest experience through new and exciting offerings, while expanding our global footprint through meaningful brand and licensing opportunities.”
Caesars Entertainment carries a Zacks Rank #3 (Hold).
International Game Technology Continues to Expand IGT PlaySports Footprint
International Game Technology PLC’s IGT IGT PlaySports solution has been deployed in nine U.S. states in more than 30 sports betting venues. The company’s sports betting footprint covers Indiana, Iowa, New York, Pennsylvania, West Virginia, Mississippi, Rhode Island, New Jersey and Nevada.
The company said that it has also accomplished sports betting agreements with customers in Oregon, Arkansas and Illinois. Currently, sports betting has been legalized in 13 states. Legalization outside Nevada has given the industry a new lease of life. The Supreme Court overturned the Professional and Amateur Sports Protection Act that banned sports betting outside Nevada. The scope for casino operators will grow as illegally, the activity is valued at billions of dollars annually in the United States.
International Game Technology holds a Zacks Rank #3.
Penn National Gaming CFO to Step Down
Penn National Gaming, Inc. PENN announced that the company’s executive vice president and chief financial officer (CFO), William J. (“BJ”) Fair will step down after Mar 31, 2020, when his employment contract term ends.
Fair joined the company in 2014 as senior vice president and chief development officer before taking the position of CFO in 2017.
Penn National carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price Performance
The following table shows the price movement of the major gambling stocks in the last week and the last six months:
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In the past five trading sessions, shares of PlayAGS, Inc. AGS, Penn National Gaming, Inc. and Red Rock Resorts, Inc. RRR have lost the most.
However, shares of Caesars Entertainment Corporation have gained the highest in the past six months.
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