Regional Casino Assets Retain Buyer Interest Despite 24-Year Treasury Highs
Despite high Treasury yields, buyer interest in regional casino assets remains, with selective deals proceeding while online M&A faces challenges.Summary
Ten-year Treasury yields have reached 24-year highs, and the Federal Reserve is expected to raise rates again, conditions that could slow casino industry consolidation. However, buyer appetite for select regional gaming assets remains strong, according to Stifel analyst Jeffrey Stantial at the Global Gaming Expo. Fertitta Entertainment's $17.6 billion purchase of Caesars Entertainment is moving forward. Century Casinos and Churchill Downs are positioned for selective deals, with Century selling two Alberta venues and Churchill listing nine regional casinos for sale. In contrast, online gaming and sports betting face limited large M&A due to low share prices and legal uncertainty, though product tuck-ins may still occur. The divergence suggests asset quality, scale, and regulatory clarity will drive deals amid higher borrowing costs.
(Source：Sccg Management)