Betting on The House: Caesars, MGM, and The Future of Casinos

The casino industry will soon enter a period of consolidation from which 2-4 players will emerge, creating a pseudo-oligopoly that will allow the winners to absorb all of the profits in the space. Caesars Entertainment ($CZR) and MGM Resorts ($MGM) are the most likely winners. Their high market shares in both digital and physical gambling provide unit economic advantages that digital-only players can’t match. What does that mean for DraftKings ($DKNG) and Fanduel’s prospects for an IPO?

Watch our webinar to find out. Hosted by Bill Brewster of The Business Brew and moderated by Jamie Catherwood of Investor Amnesia, Betting on The House features Dan McMurtrie, Portfolio Manager and Co-Founder of Tyro Partners. The discussion covers every topic relevant to Dan’s thesis, some examples of which include:

• Customer Acquisition and Rewards Programs. Paying new customers to start gambling will end. Who can adapt?
• CAPEX and Investment Cycles. Which casinos are the dirtiest, mathematically?
• Mix-Shift and Cross-Promotion. Does Barry Manilow reduce cyclicality?

There is an audience Q&A at the end, which will put you well on your way to an informed investment decision in the casino space.