Penn Entertainment, the operator of M Resort in Henderson, recently faced a significant decline in its stock price, prompting speculation and investor concerns. A Los Angeles-based investment firm suggested that Penn should consider selling some or all of its 43 casinos in 20 states to rebuild shareholder value. This suggestion caused a 20% increase in Penn’s stock price and fueled rumors of a potential sale or merger.
Analysts have been speculating about the possibility of a large-scale merger in the gaming industry, with Boyd Gaming’s recent appointment of a former investment banker to its board adding fuel to the speculation regarding a potential acquisition of Penn. Boyd Gaming operates 28 casinos in 10 states and might be interested in acquiring M Resort in Henderson.
Penn’s expansion plans for M Resort, which include adding a second hotel tower and more amenities, have also attracted attention from potential buyers. However, some analysts believe that Penn is unlikely to undertake a strategic review or engage in any sales or merger activities due to the current market conditions.
In other gaming news, PlayStudios, a Las Vegas-based social gaming provider, recently repurchased almost 11.7 million shares of its stock owned by Microsoft Corp. This move, aimed at reducing the number of shares on the market by almost 9%, was seen as an opportunity to enhance the company’s value. PlayStudios offers free-to-play games and has significant cash reserves, positioning it well for future share repurchases and potential merger and acquisition opportunities.
Meanwhile, former casino operator Steve Wynn recently won a legal battle as the U.S. Court of Appeals ruled that he does not have to register as a foreign agent of China. This decision upheld a previous ruling that any relationship between Wynn and the Chinese government had ended in 2017. Wynn was previously sued by the DOJ for allegedly lobbying on behalf of China when he was chairman of Wynn Resorts.
In other industry updates, Acres Manufacturing, a Las Vegas-based company, introduced its cashless gaming technology at Rolling Hills Casino & Resort in California, marking its first agreement with a tribal casino. This technology allows players to place wagers through a mobile wallet, enhancing the gaming experience. Additionally, Deutsche Bank gaming analyst Carlo Santarelli does not anticipate significant changes to the Formula One Las Vegas Grand Prix in 2024, despite discussions with gaming executives about potential improvements to benefit more properties along the racetrack.
Overall, the gaming industry is abuzz with speculation, potential mergers, legal battles, and technological advancements, highlighting the dynamic nature of the sector and the opportunities and challenges it presents for companies and investors alike.
