Published on: September 22, 2025, 12:42 PM.
Updated on: September 22, 2025, 12:57 PM.
- Casino operator is very selective regarding mergers and acquisitions
- Analyst indicates potential for another special dividend if Monarch doesn’t secure a deal in two years
In its characteristic understated manner, Monarch Casino & Resort (NASDAQ: MCRI) has witnessed a remarkable surge this year, climbing 30.43% and outperforming the S&P 500 by over double.
Throughout this growth, Monarch continues to operate just two casinos: the Atlantis in Reno and its flagship location in Black Hawk, Colorado. This makes the company the smallest publicly listed casino operator in the United States, a fact that has not gone unnoticed by investors and raises ongoing inquiries about potential business expansions.
In a recent client report, Truist Securities analyst Barry Jonas highlighted that while Monarch management is quite discerning regarding potential acquisitions, they are open to enhancing their portfolio if the targets align with specific standards.
These standards include properties where the operator also controls the real estate, targets in fundamentally sound and expanding markets with robust regulations, and regions that do not allow internet gaming.
Earlier this year, Black Hawk became a member of the National Association Against iGaming (NAAG), making it the first casino municipality nationwide to join. States such as Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia allow internet casinos, effectively ruling out these jurisdictions for Monarch’s potential expansion.
Monarch’s Alternative Strategies Beyond M&A
If suitable acquisition targets are not found, Monarch has various strategies to keep investors engaged.
Jonas mentioned that if no deal is completed in the next couple of years, the regional casino operator could issue another special dividend alongside its regular quarterly payments and “opportunistic” buybacks. The analyst maintained a “buy” rating with a price target of $120 on the stock.
He also noted that potential buyers have shown interest in acquiring the Reno-based gaming enterprise, but the management isn’t rushing to sell and is well-positioned to wait.
“MCRI has previously received interest for acquisition; while they review all options, their primary focus remains on maximizing shareholder value,” Jonas remarked.
Monarch’s Focus on Colorado Expansion
Black Hawk stands as one of the fastest-growing casino markets in the United States, and given that Denver has consistently been a key feeder market for Las Vegas, there’s significant potential for Monarch to capture more market share in Colorado by drawing in local patrons.
Due to real estate limitations, expanding its property in Black Hawk could be challenging, yet Jonas stated, “management will evaluate all opportunities within the market, including M&A.”
The real question lies with whether other operators in Black Hawk—such as Bally’s, Caesars, Century Casinos, and Penn Entertainment—would consider selling. They may hesitate, knowing Black Hawk’s desirability as one of the most attractive gaming regions in the western United States outside of Las Vegas.