Two casino enterprises rooted in Las Vegas emerged as highlights in the recent Barron’s “Roundtable,” where fund manager Mario Gabelli presented his investment perspectives. Among 34 investment suggestions shared by five panelists, Gabelli stood out as the only one to emphasize gaming stocks. He pointed to Golden Entertainment’s income from royalty payments tied to the sale of its route operations to J&J Gaming, alongside the value embedded in its real estate holdings, as key growth drivers for its stock.
“Golden owns The Strat hotel casino near the Strip,” Gabelli shared with Barron’s. “It’s a property undergoing significant improvement. Moreover, the company holds an additional nine acres of prime land across from The Strat, which carries substantial worth.”
Real Estate Speculation Around Golden Entertainment
There has been growing speculation that Golden might initiate a real estate transaction this year to unlock more value for its shareholders. Much of the discourse revolves around The Strat, a property often mistakenly associated with the Las Vegas Strip due to its close proximity. This casino resort, combined with the extra acreage mentioned by Gabelli, represents Golden’s most prized real estate assets.
Opportunities with Wynn Resorts
Gabelli also spotlighted Wynn Resorts as a compelling opportunity, underscoring Tilman Fertitta’s approximately 10% stake in the company and Wynn’s plans to establish a casino hotel in the United Arab Emirates (UAE).
Gabelli hinted at potential developments by suggesting discussions of a partnership between Fertitta and Wynn on an integrated resort in the Houston area, should Texas approve casino gaming. While legislative approval in Texas remains uncertain, the potential collaboration is intriguing, particularly given Fertitta’s ownership of Golden Nugget casinos. Some analysts believe Fertitta’s investment in Wynn signals a push for the operator to enhance its U.S. market presence.
“The company’s net debt, excluding Macau, stands at $3.7 billion,” Gabelli explained. “Wynn has considerable cash flow and earnings potential. Its UAE gaming license and stake in the Al Marjan Resort solidify its position.”
Located in Ras Al Khaimah, UAE, Wynn Al Marjan Island is set to be the first casino resort in the Middle East, with an opening scheduled for early 2027. Analysts have noted that the potential of this project has yet to be fully reflected in Wynn’s stock valuation, adding weight to Gabelli’s remarks on the UAE property.
Fox Corp. as an Indirect Gaming Play
Gabelli also highlighted Fox Corp. (NASDAQ: FOX) as an unconventional but promising investment related to the gaming industry. While Fox does not own casinos or sportsbooks outright, its ties to the rapidly expanding online sports betting sector were emphasized.
Fox holds a 2.4% stake in Flutter Entertainment (NYSE: FLUT) and has rights to acquire up to an 18.6% stake in FanDuel, the largest online sportsbook in the United States. Fox is in the process of securing state gaming permits, which could position the company to take full advantage of its FanDuel-related opportunities.