12 Most Profitable Casinos in the World
In this article, we will take a look at the most profitable casinos in the world. If you want to skip our detailed analysis of the casino and gambling industry, you can go directly to the 5 Most Profitable Casinos in the World.
After a devastating period during the COVID-19 pandemic, the casino industry has shown great signs of recovery. The global economy is slowly adjusting to the aftereffects of the pandemic, and gamblers and tourists are returning to gambling hubs such as Las Vegas and Macao.
The Global Gambling Industry: An Analysis
According to a report by Research and Markets, the global gambling industry was valued at $449 billion in 2022, and is projected to grow at a compound annual growth rate of 6.6%, reaching a valuation of $847.5 billion by 2032. The Asia Pacific was the leading region in the gambling market, accounting for 32.4% of the revenue of the global market in 2022. North America, Western Europe and other regions followed the APAC region. It is anticipated that North America and Western Europe will experience the fastest growth over the forecasted period, with projected compound annual growth rates of 32.2% and 22.8%, respectively. Additionally, South America and Eastern Europe will grow at compound annual growth rates of 8.3% and 1.7%, respectively.
Casino locations massively depend on gambling laws and tax rates. The U.S. and China are two of the biggest gambling countries in the world. In the U.S., gambling laws are flexible as compared to those in China. China allows only Macao and Hong Kong to be legal places for gambling and casinos, whereas gambling is legal in almost all U.S. states.
The Casino Hotel Industry in the U.S.
A major chunk of the global market of casinos lies in the entertainment hub of Las Vegas. Another report from Research and Markets posted data on the casino hotels business in the United States. As per the report, in 2022, average industry sales in the U.S. were $70.9 billion and the average sales per company were $279.1 million. Additionally, the report pointed out that over the past 3 years, the industry has grown at an annual rate of 4.3%.
The casino and gambling market is growing swiftly each year. In 2022, it was the period of recovery for most of the casino firms. The trends in the gambling industry are changing with the rise of online gambling and the emergence of online gambling stocks. When we talk about casinos, the United States is the first country that comes to our minds. Las Vegas is considered the epicentre of world-leading casinos. Hong Kong and Malaysia also have some of the most profitable casinos in the world. Additionally, Macao is emerging as a new hub for the gambling market. The Asian market is mainly focused around the southern coast of China.
European Gambling Market on The Rise
The European gambling market is skyrocketing, especially in the UK. According to the data cited by The Guardian, the UK is the largest regulated online gambling market in the world. In comparison to the US market, the UK market reported a total gross gaming revenue of GBP 9.07 billion in 2021, surpassing the US which posted GBP 7.79 billion.
Casino companies’ performance has improved after the pandemic and their stocks are also pulling off exceptionally well. Moreover, as the spending of the gambling industry is highly correlated with the overall progress of the economy, casino stocks may also be some of the best consumer discretionary stocks to invest in.
Some of the biggest gambling companies in the world include Las Vegas Sands Corp. (NYSE:LVS), Wynn Resorts, Limited (NASDAQ:WYNN), and Caesars Entertainment (NASDAQ:CZR).
Casino companies have once again started to make investments following a gap during COVID-19 pandemic. Since we have highlighted some of the most popular gambling companies, let's take a look at some notable earnings. On April 19, Las Vegas Sands Corp. (NYSE:LVS) posted stellar earnings for the first quarter of fiscal 2023. The company reported earnings per share of $0.28, surpassing EPS estimates by $0.08, and its revenue amounted to $2.12 billion, outperforming revenue estimates by $286.59 million.
After a strong beat, Las Vegas Sands Corp.'s (NYSE:LVS) is focusing on growth opportunities and looks optimistic about future developments. Here are some comments from its Q1 2023 earnings call:
“The results speak for themselves. There is a powerful recovery underway in Macao in both gaming and the non-gaming segments. The future looks very good for both markets. Our commitment to investing in both Macao and Singapore has never wavered.
We're excited to have the opportunity to develop -- to deploy more capital to expand our non-gaming offerings in Macao. The $3.8 billion commitment we made as part of the concession tender is just the baseline. We will invest more in this extraordinary market. I look forward to everyone having the opportunity to see, to witness The Londoner and the Four Seasons. The quality of our new products is exceptional.
Marina Bay Sands delivered EBITDA of $394 million for the quarter. Mass win was an all-time property record of $549 million. Rolling volumes have nearly equalled the 2019 level. Our $1 billion suite and casino renovation program is progressing. More suite inventory will continue to come online throughout the remainder of the year. We will have 400 suites available by the end of 2023, up from just 150 prior to our renovation.
It's very exciting. I don't know that in any of our markets, we had a quarter with this amount of EBITDA recovery this quickly after opening. So that's a good indicator. And so, I think we're very excited about that. I think, it's hard to call these things are -- it's -- I wish we had a crystal ball, but I think at this point, we look at the recovery and it's very encouraging.”
Pixabay/Public Domain
Methodology
In order to determine the most profitable casinos in the world, we took into account the profitability of their parent companies. For casinos owned by private companies, we relied on annual revenue or the available annual metric to quantify their profitability. For casinos owned by public companies, we considered the net income.
We sourced the annual net income for the most recent fiscal year from Macrotrends, and for casinos owned by private companies, we sourced their financials from official annual reports and press releases. We then chose each profitable casino company's flagship casino and ranked them in ascending order of the profitability of their parent companies.
Net income was prioritized for gauging a company's profitability, so privately owned casinos are ranked earlier in the list, and as we move up, we will find publicly owned casinos.
12 Most Profitable Casinos in the World
12. Grand Lisboa Palace
Annual Net Income (2022): - HK$7.84 Billion
Grand Lisboa Palace is owned by SJM Holdings Limited (OTC:SJMHF) and is located in Macao. SJM Holdings Limited (OTC:SJMHF) is a Hong Kong-based developer and operator of casinos. The company has two business divisions: Gaming Operations and Hotel, Catering, Retail and Leasing Operations. In 2022, the company lost HK$7.84 billion, however, it generated a gaming revenue of HK$6.67 billion. Operating in a prime location in Macao, Grand Lisboa remains one of the most profitable casinos in the world.
Some of the most prominent players in the global gambling industry include Las Vegas Sands (NYSE:LVS), Wynn Resorts (NASDAQ:WYNN), and Caesars Entertainment (NASDAQ:CZR).
11. Wynn Las Vegas
Annual Net Income (2022): - $0.424 Billion
Wynn Las Vegas is one of the biggest names in the industry, based in Las Vegas, Nevada. It is owned by Wynn Resorts, Limited (NASDAQ:WYNN) and the company is well-established with a market cap of $11.97 billion, as of June 26. The company has four business divisions: Wynn Palace, Wynn Macau, Las Vegas Operations, and Encore Boston Harbor. In 2022, Wynn Resorts, Limited (NASDAQ:WYNN) generated a net loss of $0.424 billion, down 43.92% year-over-year.
10. Mohegan Sun
EBIDTA (2022): $403.90 Million
Mohegan Sun operates under a private company owned by the Mohegan Tribe formally known as MGE. Mohegan Sun located in Uncasville, Connecticut, has performed considerably despite the drastic impact of the COVID-19 pandemic. In the first quarter of 2023, the casino posted net revenue of just over $239 million, dropping 4.8% year over year. During Q1, Mohegan Sun’s net income was $51.33 million, posting a 16.8% decline year over year. However, Mohegan Sun has improved its second-quarter results with revenue increasing to $225.9 million, up 4.8% from the prior year.
For the fiscal year 2022, the company’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was a record $403.9 million. Mohegan’s CEO, Raymond Pineault said:
“Our adjusted EBITDA … was the highest in our 26-year history. The first full fiscal year of operations of Mohegan Casino Las Vegas, the launch of Mohegan Digital, and the reopening and ramp-up of Niagara Resorts all contributed to these results.”
9. Foxwoods Resort Casino
Annual Revenue (Est): $300 Million
Foxwoods Resort Casino is situated in Mashantucket, Connecticut. Mashantucket Pequot Tribal Nation owns Foxwoods Resort Casino. Recently, Foxwoods won 11 first-place awards in the 2023 Best Of Dining & Nightlife Awards for Casino Player Magazine. Foxwoods Resort Casino is one of the most profitable casinos in the world. According to Growjo, the casino's annual revenue is estimated at $300 million.
8. Parx Casino and Racing
Annual Revenue (Est): $750 Million
Parx Casino and Racing is a prominent casino located in Bensalem, Pennsylvania. Parx Casino offers round-the-clock gambling experiences with a vast selection of entertainment options. It boasts more than 3,200 slot machines, 188 lively table games, and a dedicated poker room equipped with 48 poker tables. Additionally, Parx Casino also offers online gambling and online sports betting platforms.
The casino is owned by Greenwood Racing Inc., a private entity. According to Growjo, Parx Casino has an estimated annual revenue of $750 million. The casino is one of the most profitable casinos in the world.
7. Galaxy Macau
Annual Revenue (2022): $11.5 billion
Galaxy Macau is a casino resort based in the Cotai area of Macao. It remains one of the leading in the industry and also one of the most profitable casinos in the world. The casino is owned by Galaxy Entertainment Group Limited (OTC:GXYYY) and is a major contributor to the company’s revenue and earnings. Galaxy Entertainment Group Limited (OTC:GXYYY) is another leading Hong Kong-based developer and operator of casinos. Galaxy Entertainment Group Limited (OTC:GXYYY) generated net revenue of $11.5 billion in 2022, of which $7.4 billion came from Galaxy Macau.
6. Borgata Hotel Casino & Spa
Annual Net Income (2022): $1.11 Billion
Borgata Hotel Casino & Spa is located in the premier gaming area of Atlantic City, New Jersey. Based in one of the prime locations, Borgata has attracted gamblers globally and remains one of the most profitable casinos in the world. VICI Properties Inc. (NYSE:VICI) owns the casino and posted strong outcomes in 2022, reporting an annual net income of $1.11 billion.
Some of the most profitable gambling companies in the world include Las Vegas Sands (NYSE:LVS), Wynn Resorts (NASDAQ:WYNN), and Caesars Entertainment (NASDAQ:CZR).
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Disclosure: None. 12 Most Profitable Casinos in the World is originally published on Insider Monkey.