Published on: October 11, 2025, 05:04h.
Updated on: October 11, 2025, 05:04h.
- Discussions on casino consolidation are ongoing, but less intense than before
- Persistently high interest rates continue to impact asset transactions on the Las Vegas Strip
- Future deals are likely to be minor rather than transformative
The casino sector frequently abounds with speculation about consolidation. However, insights from the recent Global Gaming Expo (G2E) suggest that substantial deal-making may not be imminent.
According to a recent analysis by Stifel analyst Jeffrey Stantial, discussions surrounding mergers and acquisitions (M&A) at G2E were notably quieter than previous years. This suggests a lackluster outlook for asset transactions on the Las Vegas Strip.
“Given the increased average purchase costs, interest in Strip M&A appears limited until interest rates decrease further,” Stantial notes.
This situation is pertinent for Caesars Entertainment (NASDAQ: CZR) and the challenges it faces in the stock market. Caesars has consistently been speculated as a potential seller of one of its Strip locations—a strategy that could aid in debt reduction. Yet, the pool of credible cash buyers is small, indicating that those interested may need to secure financing deals, an unattractive option in the current high-interest environment. However, a silver lining appears on the horizon, as interest rates are projected to drop by 100 to 120 basis points by the end of 2026.
Limited Regional Casino M&A Opportunities
Looking beyond the Strip, major transactions among regional casinos also seem improbable in the near future. Stantial pointed out that most sellers are focusing on lower-quality assets, leading to diminished interest from potential buyers.
This aligns with comments from operators who have expressed that prospective buyers of regional casinos struggle to find suitable assets, and they are unwilling to rush into acquisitions for the sake of expanding their portfolios.
Stantial highlighted Century Casinos (NASDAQ: CNTY) as a possible exception, as the company is currently conducting a strategic review. Stantial mentioned, “The operator appears receptive to various options during the strategic review process,” as talks proceed regarding the anticipated divestment of its two-thirds ownership in Casinos Poland.
“We consider an outright sale unlikely due to the diversity of assets and markets, along with the challenges of underwriting to expected fully-ramped earnings power. However, we see potential for specific divestitures, specifically CNTY’s Canadian portfolio, given its increasingly non-core status and historical higher transaction multiples compared to U.S. assets,” Stantial remarked. “We anticipate that management will thoroughly evaluate options, suggesting a likely resolution in CY26.”
Focusing on Prediction Markets and Sports Betting
In light of the recent surge in financing within the prediction markets sector, there is potential for online sports betting (OSB) operators to explore acquisition opportunities in that field. However, some state regulators have cautioned that gaming companies’ licenses might be jeopardized if they delve too deeply into event contracts, which could impede OSB operators in pursuing prediction market acquisitions.
Key M&A trends to observe include “unclear strategies with prediction markets for existing OSB operators, efforts to enhance player deposits and liquidity for exchanges, and potential integration of brand and odds providers within regulated OSB operators,” Stantial concludes.