A History of Publicly Traded Casinos

Casinos have been around for centuries. The technical definition of casinos and the amenities they offer have changed over the years. However, once people realized that casinos could be lucrative, the establishments have been big business.

The city leaders of Venice, Italy, established the first casino in the 1600s. They gave it the name Il Ridotto, which means private room. Patrons were able to gamble there during carnival season, and the casino controlled all the games. By the 1700s, the location had closed. The government felt that the business was causing poverty in the city. These days, most casinos are on resort properties, as well as cruise ships and fancy restaurants. This increases the chances that patrons will visit the casino if there are luxury facilities close by.

Casinos and Public Trading

Lotteries and Casinos

The casino industry is always in a state of change. This is largely because there are several untapped markets within the industry. The changes in technology over the past few years have also made it easier for more people to invest. For instance, virtual reality makes online gambling more enjoyable. This feature alone could make some virtual casinos more profitable.

Land-based casinos are also taking advantage of technology and new ways to do business. This makes the casinos more appealing to investors. While several casinos have been privately owned for quite some time, public trading has its benefits. During the last decade or so, public trading has become more common in the casino industry. This helps to boost the reputation of many casinos and allows the facilities to add amenities to casino properties. When gamblers have a luxury gambling experience, they are more likely to keep coming back.

Profitable Casino Stocks

There are several casino companies that are quite popular and generate a significant profit in revenue and stocks. Many of these casinos also have a rich history in Las Vegas. The city is one of the most popular gambling centers in the world. This is one of the main reasons investors are so willing to continue putting money into these establishments. Here are a few examples:

  •   The Boyd Group: Sam Boyd, the company’s founder, arrived in the Las Vegas area in 1941. The story goes that Boyd had anywhere from $30 to $80 to his name when he came to the city. He got a job as a casino dealer and saved his earnings. Once he had $10,000, he began operating casinos. Boyd also had the great idea to start advertising the casinos in Hawaii. He figured that people living in a resort area may want to travel. Boyd concluded Vegas was also a great vacation destination. His plan worked. It is clear Boyd passed his entrepreneurial spirit on to his family members. To this day, The Boyd Group is still in charge of various casino properties in Vegas. The family also owns Boyd Gaming Corp. FinViz.com states the earnings per share for the company increased by 22 percent in the past year. The price/earnings for the stock trade is a 14 in terms of ratio. This is much lower than the price/earnings of the entire market, which makes the company a value stock. In 2017, the price of the stock moved from a $20 share at the start of the year. By October, it was $28 a share. Boyd properties in Las Vegas include The Orleans, The California, The Gold Coast, The Suncoast, Sam’s Town, and Main Street Station.
  •   Las Vegas Sands: Sheldon Adelson is the owner of this company. Las Vegas Sands is doing quite well and has two resorts on the Las Vegas Strip. The facilities are the Palazzo and the Venetian. Even though they are small properties, they were once visited by Frank Sinatra. This makes the locations more appealing for tourists. Las Vegas Sands is paying a dividend of 4.75 percent. The casino company also has a price/earnings ratio of 24 and insider transactions are at zero. Las Vegas Sands is also on the Gabelli and Stifel buy list. In 2017, the company exceeded its third-quarter earnings estimate. Las Vegas Sands also has properties in Macau and Singapore. The remodel for the Macau location cost the company more than a billion dollars. At the start of 2017, the stock traded for 52. By the last quarter of the year, it had increased to 62.
  •   Wynn Resorts: For years, Steve and Elaine Wynn operated the Golden Nugget in downtown Las Vegas. In 1989, the couple built the Mirage, which was the start of new and elaborate resorts on the Strip. The Wynns later sold the Mirage to MGM. The couple divorced, and, in 1998, Wynn built a bigger resort, the Bellagio. He then built the Wynn Resort and added Encore, which is next door. Wynn Resorts has a price/earnings ratio of 54. If the company continues to exceed earnings expectations, Wynn Resort stocks could be higher than similar stocks. The company has even exceeded dividend yields of the Federal Reserve overnight rate.
  •   Caesars Entertainment Corp.: People are familiar with this location because of its variety of blackjack tables. In early 2017, Caesars Entertainment Corp. traded at 9 and moved to 13 within a few months. The 40 percent increase in such a short amount of time is financially impressive. However, the casino company was recently coming out of bankruptcy at the time. Some investors could consider this volatile. The casino company has no dividend and a negative book value. Caesars Entertainment Corp. owns the following properties in Las Vegas: Bally’s, Harrah’s, The Rio, Paris Las Vegas, and The Flamingo. The corporation also owns a few locations that aren’t in Vegas.

It is also important to note that some online casinos are publicly traded as well. Amaya is an online gaming site that got the attention of investors in 2014. The company purchased PokerStars for $4.9 billion. Amaya is based in Canada and didn’t immediately capitalize on its investment. The main reason for this is because the popularity of online poker has declined in the last few years. The organization also had to deal with a public scandal. David Baazov, the former CEO, got into legal trouble. The court indicted Baazov for allegations tied to insider trading. The business was able to move past this, however, and has diversified its assets over the past few years. Amaya has more than 108 million members. As of 2017, Amaya had plans to change the company name to Stars Group. The corporation will further distance itself from scandal by moving the company’s headquarters to Toronto from Montreal. It is also reported that Amaya is preparing to offer gamers more games in addition to poker.

Net Entertainment is another publicly traded online casino to look out for. The company has been providing online software and running e-casinos since the 1990s. This, of course, means Net Entertainment is one of the online casino pioneers. Experts predict Net Entertainment will be more successful in the coming years. The company offers several online slots that are popular with gamers. Games include Aliens, Dead or Alive, Gonzo’s Quest, Arabian Nights, and Mega Fortune. The company also has several roulette and blackjack games that gamers can play live with other gamblers.

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A Massachusetts native, blogger Angeline Everett grew up in the Allston neighborhood of Boston and earned a degree in casino management from the University of Massachusetts-Amherst. After graduating, Angeline moved to Atlantic City where she joined the young team at the Borgata Casino as a compliance representative, while blogging on the side. After a few years in the back office, Angeline moved to the floor to work first at a casual poker dealer and later casual poker floor supervisor. Fascinated with games of chance since she was a child, Angeline currently divides her time between blogging and work on her first book.