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 MGM Resorts International (NYSE:MGM) stands against the other best 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 shot of an entertainment resort, its buildings and gaming amenities sprawling along the seafront.
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).
MGM Resorts International (NYSE:MGM)
Number of Billionaires: 12
Billionaire Holdings: 412,584,112
MGM Resorts International (NYSE:MGM) boasts one of the gaming industry’s most spectacular property portfolios. Along with properties in Atlantic City, Detroit, and Mississippi, it also owns many of the most renowned casino resorts on the Las Vegas Strip, such as the Bellagio, MGM Grand, Luxor, and New York-New York. It also holds a 56% share in two Macau casinos, MGM Macau and MGM Cotai. Compared to many of its competitors, it has greater exposure to Las Vegas tourists since almost two-thirds of its 45,000 guest rooms are located on the Strip.
MGM Resorts International (NYSE:MGM) saw an increase in stock price following better-than-expected fourth-quarter results, encouraging remarks regarding recent performance and prospects, and a forecast that its online gambling joint venture will produce positive EBITDA this year.
In 2024, the firm broke all previous records by hitting all-time highs in hotel revenue, F&B revenue, domestic slot win, and consolidated net revenues. The business had a great start to 2025, as seen by higher domestic operations revenue in January and projections for ADR growth all year long. A strong fourth quarter was a result of particularly outstanding operations in Las Vegas, where December slot handle and win set new records. Moreover, MGM Resorts International (NYSE:MGM) surpassed the previous record by 43% in December, recording its highest-ever convention reservations. BetMGM maintained its strong momentum, delivering more than $2 billion in top-line growth, with 2025 net revenues from operations estimated to be $2.4 billion to $2.5 billion. In the meantime, the firm’s China market share increased to more than sixteen percent in December, and the company reported its highest-ever full-year segment adjusted EBITDA.
Longleaf Partners Fund stated the following regarding MGM Resorts International (NYSE:MGM) in its Q4 2024 investor letter:
“MGM Resorts International (NYSE:MGM) – Hospitality and gaming company MGM Resorts was a top detractor for the quarter and the year. Despite relatively strong execution by the company and opportunistic repurchases of discounted shares, the market did not like the company’s quarter-to-quarter volatility, especially in the second half of the year. When making the necessary adjustments, MGM’s core Las Vegas properties continued to grow nicely if boringly in the low-mid-single digit range during the year. MGM remains one of our larger share repurchasers in the portfolio, demonstrating its commitment to shareholder returns. The company’s hidden assets in online gaming and Asia also showed progress as the year went on. We remain confident in the management team, led by CEO Bill Hornbuckle, as they navigate these challenges and focus on long-term value creation.”
Overall, MGM ranks 3rd on our list of the Best Casino Stocks to Buy According to Billionaires. While we acknowledge the potential for MGM 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 MGM 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.
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