Posted on: October 11, 2025, 05:04h.
Last updated on: October 11, 2025, 05:04h.
- Casino consolidation chatter is alive, but not as vibrant as in past years
- Still high interest rates weighing on Las Vegas Strip asset sales
- Bolt-on, not transformational deals expected
The casino industry is often a hotbed of consolidation rumors, but if chatter from the recently concluded Global Gaming Expo (G2E) is any indication, large-scale deal-making likely isn’t the near-term cards.
In a new report to clients, Stifel analyst Jeffrey Stantial notes that mergers and acquisitions (M&A) talk at G2E was subdued compared to prior years. That includes a muted outlook for asset sales on the Las Vegas Strip.
Given larger average purchase price, Strip M&A appetite seems limited until interest rates come in further,” observes Stantial.
That’s relevant to Caesars Entertainment (NASDAQ: CZR) and likely priced into the flailing stock. Caesars has long been rumored to be a candidate to offload one of its Strip properties — a move that would help reduce debt — but the pool of credible cash buyers is small, meaning prospective suitors likely need to finance deals and that’s an unattractive proposition when interest rates are high. The potential good news is that rates are expected to fall by 100 to 120 basis points by the end of 2026.
Slim Pickings for Regional Casino M&A, Too
Beyond the Strip, it’s also unlikely that there will be needle-moving transactions among regional casinos over the near-term. Stantial said the bulk of seller interest is for lower quality assets and that could result in limited interest among potential buyers.
That jibes with some operator commentary indicating that would-be buyers of regional casinos simply can’t find assets that meet their standards and that they won’t be rushed into deals just to increase the size of their portfolios.
The analyst noted a possible exception on the seller side is Century Casinos (NASDAQ: CNTY), which is currently in the midst of a strategic review. Stantial said that operator “seemed open to all options in the ongoing strategic review.” The company is holding talks about the long-awaited divestment of its two-thirds interest in Casinos Poland.
“We continue to see an outright sale as unlikely given the variety of assets/markets & challenges under-writing to expected ‘fully-ramped’ earnings power, though see potential for one-off divestitures – in particular CNTY’s Canadian portfolio given increasingly non-core nature & historically higher transaction multiples vs. U.S. assets,” observes the Stifel analyst. “We expect management to be thorough evaluating options, indicating more likely CY26 resolution.”
Eye on Prediction Markets, Sports Betting
Given the recent flurry of financing activity in the prediction markets space, it’s possible that online sports betting (OSB) take closer looks at acquisition candidates in that arena. However, OSB operators could be hamstrung regarding prediction market purchases because some state regulators have warned gaming companies licenses could be at risk if they earnestly move into event contracts.
Related M&A trends to monitor include “undetermined prediction markets strategies for incumbent OSB operators, and efforts to accelerate player deposits/liquidity for exchanges, and brand & odds provider tuck-ins for regulated OSB operators,” concludes Stantial.
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