We recently compiled a list of the 10 Best Casino Stocks to Buy According to Billionaires. In this article, we are going to take a look at where Wynn Resorts, Limited (NASDAQ:WYNN) stands against the other casino stocks.
The casino industry has rebounded strongly from the COVID-19 pandemic, due to pent-up demand from gamblers and visitors returning to popular places such as Las Vegas. Brick-and-mortar casinos make a substantial profit from hotel operations, conventions, and other events in addition to the revenues that they make from slot machines and table games. Casino stocks are categorized as consumer discretionary since tourism and gambling spending are strongly correlated with the overall economic condition. According to Market Research Future, the global casino market is projected to grow from $309.54 billion in 2024 to $511.6 billion by 2032, with a compound annual growth rate (CAGR) of 6.48% over the forecast period (2024-2032). Furthermore, in 2023, the casino market was estimated to be worth $290.7 billion.
Regionally, the Asia Pacific Casino market dominates the industry due to the growing availability of online casinos and the average individual’s income. The North American casino market has the second-largest market share due to the legalization of sports betting and the approval of online gambling in the region. Furthermore, the UK casino market grew at the quickest rate in the European region, while the German casino industry held the largest market share.
Macquarie analyst Chad Beynon recently highlighted the significant market reaction to casino industry earnings even though the results were essentially in line with forecasts. After five years of underperformance, the industry saw double-digit stock increases due to improving sentiment, potential interest rate drops, and solid early-year trends. Although Macau’s recovery is still below pre-pandemic levels, gaming revenue is projected to rise by 8% in 2025, outperforming the U.S. market’s flat-to-2% growth. Chinese New Year activity was consistent rather than volatile, showing a healthy demand trend. By bypassing the costs of licensing and regulations, new event-based contracts may pose a threat to established operators. However, Beynon believes that licensed operators will fight back, as they did against sweepstakes and illegal betting. Investor confidence was strengthened by generally favorable remarks regarding recent trends, even if some companies decided not to provide updates during the quarter. The industry is now seen more favorably by analysts after years of weak performance.
Apart from analysts, there are also billionaire investors who remain bullish on the casino stocks. Ken Fisher’s Fisher Asset Management, with a portfolio worth more than $252 billion, has invested in two renowned casino stocks. In Q4 of 2024, Fisher invested more than $201 million and owned more than 2.3 million shares in a high-end casino and hotel operator in the United States. Fisher’s confidence in the market’s long-term potential is proven by the fact that the stock makes up 0.07% of his portfolio. In the same quarter, Fisher also made an investment of more than $153 million in an American multinational hospitality, sports, and entertainment company.
Meanwhile, in Q4 of 2024, Billionaire Carl Icahn’s Icahn Capital LP, which has a $7.4 billion portfolio, showed its trust in the industry by investing over $82 million in the largest casino-entertainment firm in the United States.
Aerial view of a luxury hotel tower surrounded by lush green landscaping.
Our Methodology
For this article, we scanned Insider Monkey’s Q4 2024 proprietary database of billionaires’ stock holdings and identified casino stocks from the list. These companies are involved in operating casinos, online gaming platforms, sports betting, and resort entertainment. From there, we picked the top 10 stocks with the highest number of billionaires having a stake in them. Where two or more stocks were tied on billionaire sentiment, we used the dollar value of billionaire holdings as a tiebreaker between them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Wynn Resorts, Limited (NASDAQ:WYNN)
Number of Billionaires: 11
Billionaire Holdings: 562,443,265
One of the Best Casino Stocks, Wynn Resorts, Limited (NASDAQ:WYNN) is another diverse casino operator, owning 72% of the Wynn Palace and Wynn Macau in Macau. The Encore Boston Harbor, which debuted in 2019, and the Wynn and Encore in Las Vegas are also fully owned by it.
WynnBET stopped business in various states in 2024, as it had done in 2023. Revenue soared to $6.5 billion in 2023, and operating income came to $840 million. In 2024, Wynn Resorts Limited (NASDAQ:WYNN) set yet another record for adjusted property EBITDAR, which included a record for Las Vegas annually. The company achieved excellent operational performance in Las Vegas, with table games dropping flat against tough competitors and slot handles increasing by 13%, while gaming market share grew significantly in Q4. The firm in Macau produced $293 million in EBITDA in the fourth quarter, which was up 11% sequentially but down roughly 1% year over year. Despite the competitive market, it maintained a particular focus on maximizing EBITDA and a high margin profile.
Wynn Resorts, Limited (NASDAQ:WYNN) recently revealed intentions to build a resort near Dubai in 2026 as part of its ongoing development of large premium resorts. Investors may benefit in the long run from the company’s concentration on underdeveloped markets, such as Boston and Dubai.
Stifel maintained a Buy rating on Wynn Resorts, Limited (NASDAQ:WYNN) shares and increased the price objective from $123 to $128. Although Wynn’s Q4 report and projection “probably aren’t as strong” as MGM, the company tells investors that “it’s pretty darn close and more importantly should allow WYNN shares to move higher.”
Overall, WYNN ranks 5th on our list of the Best Casino Stocks to Buy According to Billionaires. While we acknowledge the potential for WYNN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than WYNN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stock To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
