Asset allocation model
THE GAMING INDUSTRY
Few industries hold the odds as firmly in their favor as casinos. The gaming industry is a consistent winner, making for highly profitable investments and hefty returns. But name-brand recognition is not always enough to guarantee success in a $500-plus billion global industry – the space has far more distinctions than meets the eye.Casinos have recently benefited from less government restriction, allowing more freedom to court foreign investment and ownership. Less regulation also led to increased regionalization, new, legal forms of betting in more markets (like sports betting), and the development of hotel-casino-entertainment hybrids in new markets. Online gaming continues to hold potential, and evolving markets like Macau have weathered ups-and-downs to keep investor interest.While stocks in big-time players like Las Vegas Sands, MGM Resorts International, and Wynn Resorts remain popular (and profitable) investment options, other opportunities are available: VanEck Vectors Gaming ETF is a popular fund of gambling industry stocks, branching out into online gambling and supply companies. Gambling suppliers are less prone to disruption, making companies like Scientific Games and International Game Technology attractive choices, while land-owning real estate investment trusts (REITs) like Gaming and Leisure Properties, who own the land some casinos are built on and collect rent, can be a less risky option.