Date of Publication: October 27, 2025, 11:34h.
Last Modified: October 27, 2025, 11:34h.
- Three key regional casino operators poised for industry consolidation.
- Increased buzz about upcoming activity in the casino sector.
- Monarch Casino likely to maintain a discerning approach.
Early signs suggest that asset transactions in the gaming sector may be on the rise, with a few well-known casino operators anticipated to take center stage.
According to a recent client report by Jefferies analyst David Katz, regional casino operators Boyd Gaming (NYSE: BYD), Churchill Downs (NASDAQ: CHND), and Monarch Casino & Resort (NASDAQ: MCRI) are highlighted as potential frontrunners in forthcoming asset transactions.
Our checks indicate that CHDN may consider divesting some of its regional gaming properties, whereas MCRI and BYD are inclined to pursue acquisitions,” the analyst noted. “We would view any transaction involving these companies positively for their stock performance if terms are favorable.”
Churchill Downs, known for its historic racetrack in Kentucky, is enhancing its venue offerings while expanding historical racing machine (HRM) locations. While the company has previously engaged in acquisitions, there are assets that may catch the interest of potential buyers, though Katz didn’t specify which assets could be up for sale.
Ongoing Speculation About Monarch’s M&A Activity
The market is showing signs that regional casinos could be on the market. Recently, MGM Resorts International (NYSE: MGM) disclosed the sale of the operating rights to the MGM Northfield Park racino near Cleveland for $546 million to private equity firms associated with Clairvest Group.
Furthermore, analysts have suggested that Caesars Entertainment (NASDAQ: CZR) may collaborate with landlord VICI Properties (NYSE: VICI) to negotiate terms regarding its regional master lease. This could potentially result in Caesars selling off one or two regional properties to bolster cash reserves and reduce debt, though it remains uncertain if they intend to sell any regional venues.
Amidst all the speculation, Monarch Casino is likely to play a role in the consolidation talks, mainly due to its ownership of only two gaming locations — one in Black Hawk, Colorado, and the other in Reno. While rumors of its involvement in M&A persist, no substantial outcomes have emerged, underscoring the management’s careful approach.
If Monarch fails to find appealing acquisition opportunities, it can choose to reserve its capital for returning value to shareholders through regular dividends and stock buybacks.
Boyd Positioned for M&A Activities
Having generated $1.4 billion in post-tax revenues from selling its 5% stake in FanDuel, Boyd Gaming has effectively lowered its debt burden and currently possesses what some analysts view as one of the strongest balance sheets in the industry. This positions the operator well to engage actively in potential casino consolidations.
Various market analysts suggest that Boyd’s intentions regarding mergers and acquisitions have remained unchanged post-FanDuel transaction, indicating a steadfast yet flexible acquisition strategy.
Last year, there were murmurs that Boyd might target rival Penn Entertainment (NASDAQ: PENN) in a significant deal. However, Wall Street quickly dismissed this idea, as it was deemed that Penn was not inclined to sell. Consequently, this speculation faded almost as swiftly as it materialized.