З Best Casino Stocks to Watch in 2021
Explore the best casino stocks in 2021, highlighting key performers in the gaming and entertainment sector. Analyze market trends, financial results, and industry developments shaping investment opportunities.
Top Casino Stocks to Monitor in 2021 for Strong Market Performance
I started tracking operators with real momentum after the 2022 downturn hit. Not the ones with flashy ads and empty promises. The ones quietly rebuilding their bankrolls, tightening their math models, and actually paying out. You want the ones where the RTP’s not just a number on a page–check the actual payout history. If the live data shows 96.3% over 100k spins? That’s not a fluke. That’s a signal.
Look past the headlines. I dug into a few operators that didn’t scream for attention. One had a 12-month revenue dip, but their customer retention? Up 17%. That’s not a bounce–it’s a reset. Their new mobile app dropped in Q3, and the average session time jumped from 4.2 to 7.1 minutes. That’s not vanity. That’s retention built on real engagement.
Volatility matters. I’ve seen games with 500x max win claims that never hit more than 20x in 10k spins. (Spoiler: the scatter retrigger is locked behind a 1-in-10,000 trigger.) But one operator I’m watching now has a base game that’s slow, yes–but the retrigger mechanics are live, and the average bonus win? 38x the wager. That’s not hype. That’s a working system.
Check the balance sheet. Not the PR. Look at net cash flow. If they’re not burning through capital to fund promotions, and still paying out at 95%+ RTP across their portfolio? That’s a sign of discipline. One company I followed cut 30% of its marketing spend in Q1, but their active player count grew 11%. They’re not chasing eyeballs. They’re keeping the ones they have.
Don’t trust the “growth” stats without context. I saw a 200% rise in new signups last quarter. But the first 7-day retention? 12%. That’s a fire sale. The real winners? The ones with 42% 7-day retention and a 14% month-over-month increase in average bet size. That’s not volume. That’s value.
My rule: if the operator isn’t making money on its core games, it’s just a casino with a spreadsheet. If it’s reinvesting in player experience, not just promotions, and the math checks out–then you’re looking at something that can survive the next downturn. Not just survive. Thrive.
Top Performing U.S. Firms with Strong Revenue Growth in 2021
I’ve been tracking the big players in the U.S. gaming space since the first post-pandemic reopening. And if you’re looking for firms that actually delivered, not just hype, here’s who stood out: Las Vegas Sands (LVS), MGM Resorts (MGM), and Caesars Entertainment (CZR).
LVS posted a 142% revenue jump in Q3. That’s not a typo. Their Macau numbers were already strong, but the U.S. rebound? Brutal. I watched the Strip reopen with half the tables live, and by summer, they were hitting 90% occupancy. Their digital push–especially in sports betting platform–wasn’t just filler. I placed a $50 bet on a Raiders game via their app and cashed out $210. That’s not luck. That’s a system working.
MGM? They’re the quiet operator. Their revenue grew 131% year-over-year. But what caught my eye wasn’t the headline number–it was the shift in their customer base. More high rollers, more repeat visits. I was at the Bellagio during a weekend, and the high-limit rooms were packed. The dealers weren’t just smiling–they were busy. I saw one guy lose $80K in two hours. He didn’t leave. He came back the next day. That’s retention.
Then there’s CZR. They’re the underdog with the edge. After the restructuring, their adjusted EBITDA jumped 168%. Their Caesars Rewards program? I’ve used it for five years. It’s not just free drinks. It’s real value. I got a $300 bonus just for hitting 100 spins on a slot I don’t even like. (Yes, I did it. For the points. It’s a war of attrition.) Their online gaming revenue? Up 175% in the second half. That’s not growth. That’s a full-scale invasion.
If you’re building a portfolio, these three aren’t just ticking boxes. They’re proving they can handle volatility–both market and player behavior. I’d bet on them again. Not because they’re shiny. But because they’re still standing when others folded.
Key Metrics to Evaluate Casino Stock Valuations: P/E, FCF, and Dividend Yield
I’m not here to hand you a spreadsheet with a smile and a pat on the back. If you’re sizing up a gaming operator’s financials, you need to cut through the noise. Start with P/E – but not the headline number. Look at the trailing 12-month figure, not the forward. A P/E of 15 might look cheap until you check the earnings quality. Are they being propped up by one-time gains? (Spoiler: they are.) I’ve seen operators with P/E under 10 that still tanked when the next quarter came in with negative EPS. Don’t trust the number. Check the trend.
Free Cash Flow (FCF) is where the real juice is. I’ve watched companies with bloated revenue lines bleed FCF. That’s a red flag. If FCF is negative for three quarters straight, you’re not investing in a business – you’re funding a casino with a credit card. Target companies with consistent FCF margins above 15%. That’s the floor. Anything below? Walk away. I once saw a firm with $1.2B in revenue and $14M in FCF. That’s not a sustainable model – that’s a burn rate.
Dividend yield? Don’t chase the 8% number like it’s a jackpot. High yield often means the stock is already beaten down. But here’s the trick: look at payout ratio. If it’s above 80%, the dividend is on life support. I’ve seen yields dip to 3.5% after a cut – and the stock still dropped 12%. That’s not a recovery. That’s a dead man walking. Stick to operators with payout ratios under 60% and a history of increasing dividends. That’s how you spot the real players.
| Company | P/E (TTM) | FCF Margin (%) | Dividend Yield (%) | Payout Ratio (%) |
|---|---|---|---|---|
| Entain | 12.4 | 18.7 | 3.1 | 54 |
| Flutter | 16.2 | 14.3 | 2.8 | 61 |
| Kindred | 9.8 | 22.1 | 4.5 | 49 |
| Scientific Games | 11.0 | 17.5 | 3.9 | 57 |
Numbers don’t lie. But they don’t tell the whole story either. I’ve seen a 3.9% yield with a 57% payout ratio and 17.5% FCF margin – that’s a solid base. Now compare that to a 4.5% yield with a 49% payout and 22.1% FCF. That’s not just good – that’s a machine. I’d bet on the latter. Not because it’s flashy. Because it’s built to last.
Online Gambling Expansion Is Crushing Traditional Operators’ Returns
I watched Caesars Entertainment’s Q2 report last month and my jaw dropped. Revenue from brick-and-mortar properties dropped 17% year-over-year. Meanwhile, their digital arm grew 38%. That’s not a trend. That’s a bloodbath for legacy models.
Let me be clear: I don’t hate land-based venues. I’ve sat at a $5 blackjack table in Atlantic City, felt the heat from the dealer’s breath, the clink of chips. But now? The math’s broken. Players aren’t coming back for the ambiance. They want speed, mobile access, and instant play. And online delivers it–every single day.
Take MGM Resorts. Their online sportsbook revenue hit $117 million in Q1. Their Vegas properties? Flat. No growth. Not even a twitch. The shift isn’t coming. It’s already here. And it’s eating margins.
Here’s the real kicker: online operators are running with 65%+ gross margins. Land-based venues? 45% at best. The difference? No physical overhead, no floor staff, no lighting bills. Just pure digital leverage.
So what does this mean for investors? Stop chasing the old guard. I’ve been tracking these numbers for years. I’ve seen the data, the spins, the player behavior. The ones with strong digital infrastructure–like Penn National, which owns Barstool Sports and has a 22% online win rate–don’t just survive. They thrive.
Don’t get me wrong. I still play slots in person. But I’m not betting on the future of gaming being in a building with a carpet and a cocktail waitress. The future is in the app. The future is in the RTP, the volatility, the retrigger mechanics. And if you’re not tracking that, you’re already behind.
Bottom line: if your portfolio still leans hard on legacy operators, you’re holding a dead spin. The game changed. The math changed. And unless you adapt, you’re just another player waiting for a win that never comes.
Regulatory Risks and Their Influence on Major Casino Stock Movements
I’ve watched three major operators get hammered in a single quarter because of one thing: regulators flipping the script mid-game. No warning. No retrigger. Just a sudden drop in market cap that made your bankroll feel like it was on a 1000x dead spin streak.
Take the Nevada Gaming Commission’s 2021 crackdown on unlicensed online wagers. One company–let’s call it Operator X–had 18% of its revenue tied to unregulated markets. When the fines hit, the share price dropped 22% in two days. Not a correction. A bloodbath.
Here’s what I track now: licensing renewals, state-level ballot initiatives, and the speed of enforcement. If a state like New Jersey or Pennsylvania pushes for stricter KYC checks or higher tax brackets, expect a 5–10% dip in valuation within 48 hours. I’ve seen it happen twice. Both times, I sold before the news hit.
Volatility isn’t just in the games anymore. It’s in the legal framework. The moment a new bill gets introduced in Congress–especially one that touches interstate gaming–watch the options market. The 30-day implied volatility spikes. That’s when I adjust my position.
And don’t trust the PR. “We’re fully compliant” means nothing if the audit trail’s messy. I’ve dug into annual filings and found discrepancies in revenue reporting. One operator underreported mobile revenue by 14%–not a typo. A deliberate omission. That’s not a risk. That’s a trigger.
Bottom line: regulatory risk isn’t a footnote. It’s the main event. If you’re holding a position, ask yourself:
- Is the operator operating in a state with pending legislation?
- Have they faced fines in the last 18 months?
- Is their compliance team staffed by ex-regulators or ex-attorneys?
- Do they disclose all jurisdictions they operate in–no sugarcoating?
If the answer to any of these is “no,” walk away. No matter how high the RTP on the dividend. No matter how shiny the base game.
My Rule of Thumb:
When a regulator drops a new guideline, sell 25% of your stake within 24 hours. Not wait. Not “monitor.” Sell. Let the market panic. I’ve made more on the exit than I ever did on the way in.
How Inflation and Interest Rates Crush or Lift Gaming Operators in Real Time
I’ve seen the numbers scream. When inflation hits 8%, I don’t just feel it at the pump–I see it in the margins. Operators with heavy debt? They’re bleeding. Every 0.25% hike in rates adds 1.3% to their annual interest burden. That’s not a whisper. That’s a scream. I ran the numbers on three major players: one with 60% debt, another with 40%, and a third with a net cash position. The difference? The high-leveraged one lost 18% in EBITDA over 18 months. The cash-rich one? Grew revenue by 9%. No fluff. Just math.
Higher rates mean tighter credit. No new projects. No expansion. No new land-based builds. I watched a major operator delay a $1.2B Atlantic City revamp because the cost of capital jumped 4.1%. That’s not a delay. That’s a death knell for growth. But here’s the twist: if inflation spikes but rates stay flat? That’s a free pass. You keep your cash flow, your comps, your VIP perks–still rolling. The problem? Rates don’t stay flat. They move. Fast.
And when rates drop? That’s when the real fireworks start. I saw a 7% stock surge in one operator after the Fed paused hikes. Why? Because their $2.3B bond issue became cheaper to refinance. That’s not theory. That’s real money. I’ve tracked their bond yields–down 110 bps in six weeks. That’s 110 basis points in saved interest. That’s $26 million a year. That’s a direct boost to the bottom line. No spin. No bonus. Just cold, hard cash.
So what’s my move? I’m not chasing the big names with 70% debt. I’m in the ones with strong balance sheets, low leverage, and a real estate footprint in stable markets. If inflation spikes again, I want operators who can absorb it. If rates drop? I want those with the firepower to buy back shares or fund new digital launches. Not just any launch–ones with 96.8% RTP, 5.2 volatility, and Retrigger mechanics that actually pay out. Because in this game, it’s not about the flash. It’s about survival.
Long-Term Holds vs. Short-Term Trades: What Actually Works in the Real Game
I’ve held a position in a major operator for 18 months. It didn’t move for 14. Then it spiked 32% in two weeks. I didn’t time it. I just stayed. That’s the power of patience when the fundamentals don’t lie.
Short-term plays? They’re a grind. You’re chasing earnings reports, analyst upgrades, or a sudden spike in online gaming revenue. I watched a 12% pop after a Q2 beat–then a 17% dump in three days. No warning. No pattern. Just market noise. If you’re trading on headlines, you’re already behind.
Long-term holds work only if you’re tracking actual metrics: (1) recurring revenue from regulated markets, (2) EBITDA margins above 35%, (3) cash flow from operations that consistently exceeds capex. I checked one operator’s last five quarters–revenue grew 8.2% YoY, EBITDA up 11%, and they paid down $400M in debt. That’s not a story. That’s a signal.
Short-term traders live on volatility. I’ve seen a single day’s move of 14% on a single event–like a new state license or a regulatory tweak. But here’s the catch: you need to act before the market does. And if you’re not on the inside, you’re just a lamb at the slaughter.
My rule: If you’re not comfortable holding for 12+ months, don’t touch this space. The real money isn’t in the bounce–it’s in the compounding. One operator I’ve followed since 2019 is up 210% over that span. Not because of a single hot quarter. Because they’re building infrastructure, expanding into new jurisdictions, and keeping their payout rates above 96.5%.
Dead spins in the market? They happen. But if your strategy relies on catching every upswing, you’ll bleed your bankroll. I lost 18% on a 3-day trade in a company that had solid fundamentals. Why? I panicked. I didn’t trust the data.
Bottom line: If you’re not tracking financials, you’re gambling. And I’ve seen too many people lose their edge because they chased a meme. Stick to the numbers. Let the math do the work. If you can’t sleep at night holding a position, you’re not ready for this game.
Questions and Answers:
Which casino stocks showed the strongest recovery in 2021 after the pandemic-related shutdowns?
Several casino companies reported significant rebounds in 2021 as travel restrictions eased and gaming venues reopened. Las Vegas Sands Corp. (LVS) stood out due to its strong presence in Macau, where demand surged after the region lifted quarantine measures. The company’s revenue from Macau operations more than doubled compared to 2020 levels. Similarly, MGM Resorts International (MGM) saw a sharp rise in domestic visitor numbers at its Las Vegas properties, contributing to a 78% increase in adjusted EBITDA. Caesars Entertainment (CZR) also improved its financial results, driven by higher occupancy rates and increased spending at its casino-hotel properties. These gains were supported by aggressive marketing campaigns and expanded gaming offerings, which helped rebuild customer confidence. The recovery was not uniform across all regions, but companies with diversified portfolios—especially those with international exposure—tended to outperform.
How did online gaming impact the performance of traditional casino stocks in 2021?
Online gaming played a growing role in the financial results of major casino operators during 2021. Companies like DraftKings (DKNG) and FanDuel (owned by Flutter Entertainment) saw substantial increases in user engagement and revenue as states continued to expand legal sports betting. While these are not traditional casino stocks, their performance influenced investor sentiment toward the broader gaming sector. For physical casino operators, online platforms provided a supplementary income stream. MGM Resorts and Caesars both launched or expanded their online betting and iGaming services, which contributed to higher overall revenue. However, the impact on core casino earnings remained limited compared to in-person operations. The shift toward digital offerings was more strategic than transformative in 2021, with most companies still relying heavily on brick-and-mortar locations for the majority of their profits.
What role did international markets play in the success of casino stocks in 2021?
International markets were critical for several U.S.-based casino companies in 2021. Las Vegas Sands Corp. derived a large portion of its earnings from Macau, where the company held a dominant position in the luxury casino market. As Chinese travelers returned to Macau after a year of restricted movement, the company reported a 230% year-over-year increase in Macau revenue. Similarly, Wynn Resorts (WYNN) benefited from strong performance in its Asian operations, particularly in Japan, where it was preparing for a future license. However, not all international ventures delivered strong results—some operators faced delays or regulatory uncertainty. Despite these challenges, companies with a clear strategy in high-growth international markets were better positioned to recover from pandemic-related losses. The ability to operate in regions with high demand and fewer restrictions gave these firms a competitive edge.
Were there any risks that affected casino stock performance in 2021 despite the overall recovery?
Yes, several risks influenced casino stock performance in 2021. One major concern was the uneven pace of reopening across different U.S. states and countries. Some regions delayed reopening casinos or imposed strict health protocols, which limited visitor numbers. In Macau, the Chinese government maintained tight control over travel, leading to fluctuations in revenue. Another risk was the rising cost of labor and materials, which pressured profit margins. Companies also faced increased competition from new online betting platforms, which drew attention and spending away from physical locations. Additionally, some investors remained cautious due to concerns about long-term changes in consumer behavior—whether people would return to crowded venues after the pandemic. These factors led to volatility in stock prices, even as overall earnings improved.
How did dividend payments influence investor interest in casino stocks during 2021?
Dividend payments were a notable factor for income-focused investors considering casino stocks in 2021. Companies like Las Vegas Sands and MGM Resorts resumed or increased dividend distributions as their financial health improved. MGM, for example, reinstated its quarterly dividend in the second quarter of 2021, signaling confidence in future earnings. This move attracted investors looking for stable returns, especially in a low-interest-rate environment. However, not all companies paid dividends—some, like Caesars Entertainment, prioritized debt reduction and capital reinvestment over payouts. The decision to pay dividends depended on each company’s balance sheet strength and long-term strategy. Investors who valued consistent income found these payouts appealing, but others focused more on growth potential, particularly in companies expanding into online gaming or international markets.
Which casino stock showed the strongest recovery in 2021 after the pandemic-related shutdowns?
Caesars Entertainment experienced one of the most noticeable rebounds among casino stocks in 2021. After closing multiple properties during the early months of the pandemic, the company began reopening locations in the second quarter of the year as travel restrictions eased and state governments allowed casinos to resume operations. By mid-2021, Caesars reported a significant increase in revenue, particularly from its properties in Nevada and Illinois. The company also benefited from a strategic merger with Eldorado Resorts, which expanded its footprint and improved operational efficiency. This combination of re-opening momentum and structural changes contributed to a steady rise in its stock price throughout the year. Investors were encouraged by the company’s ability to manage costs while adapting to new health and safety protocols, which helped restore customer confidence. The stock outperformed several peers during this period, making it a key focus for those tracking the recovery of the gaming sector.
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