Promising Forecast for Land-Based Gaming Mergers & Acquisitions in 2025
The year 2025 is looking up for the casino industry after facing challenges in 2024. With interest-rate cuts and changes at the Federal Trade Commission on the horizon, there may be more opportunities for mergers and acquisitions in the gaming world.
Key insights from the end-of-year Truist Securities’ Wicked Good 12th Annual GLLR Summit in Boston shed light on the positive trends expected in the land-based gaming sector. Companies like Accel Entertainment, Caesars Entertainment, Churchill Downs, DraftKings, and others were present at the summit.
Truist analyst Barry Jonas expressed optimism about the future of land-based gaming, noting that the regional sector is showing signs of improvement after a tough 2024. He mentioned that operators are seeing some momentum in November and December, with factors like a healthier post-election consumer, lower gas prices, and better performance against new competition contributing to this positive trend.
Caesars, in particular, has reported positive developments since its late October earnings report. While their 2025 regional commentary projected a slight decline in EBITDA, Jonas believes that this might actually be closer to flat or slightly up if evaluated today.
In Las Vegas, operators are seeing more consistent trends despite challenging comparisons. While there have been some declines in gaming revenue in recent months, with the F1 contribution down year-over-year, November and December are showing stronger results.
Looking ahead, operators are optimistic about a return to growth in 2025, especially with a strong group/event calendar supporting their expectations. There is also excitement about the potential for mergers and acquisitions in the gaming industry, as changes at the FTC and rate cuts could create new opportunities for portfolio adjustments and increased valuations.
Overall, the sentiment is positive for the gaming sector in 2025, with the possibility of more M&A activity and continued growth on the horizon. It will be important to watch how valuation expectations and bid/ask spreads evolve to determine the success of potential deals in the coming year.
