The new year is fast approaching, and it’s time for the gambling industry to reflect on the past year. Headlines included further expansion of sports betting into new states, major acquisitions, and even a company-wide ransomware attack or two.
For some, the year offered a chance for redemption after a turbulent 2022, while others went from hero to zero in just 12 months. Now that the year is coming to an end, it’s time to sort out the winners from the losers.
Benefit from the stock prices of US gaming giants, including operators and suppliers, Vegas slots news online It has compiled a list of losers for 2023. From Wynn Resorts International to Entain, all of these companies have had a year to forget.
5. Wynn International Resorts
January stock price: $85.61
December stock price: $82.68
Decrease: 3%
While a 3% drop in stock price isn’t too bad compared to other losers, it’s been a year to forget for Wynn Resorts International for several reasons.
First, the casino operator’s sports betting arm, WynnBET, has been one of the latest casualties in the US marketing war of attrition. Wynn announced the closure of its online sports bookings in August of this year in eight states, including Arizona, Colorado, Louisiana, New Jersey and others. Its sports reservations in Massachusetts and Nevada remain in operation due to land operations in these states. In a logic that has now become common among closed-door sportsbooks in the US, Wynn blamed user acquisition costs.
The sexual assault case against its former CEO Steve Wynn has reared its ugly head once again
Wynn has also found himself in the press several times for all the wrong reasons. The sexual assault case against its former CEO Steve Wynn reared its ugly head again when he agreed to pay a $10 million settlement to sever ties with the Nevada gaming industry. Wynn’s lawyers also confirmed in September that a settlement had been reached with the nine women who alleged the company allowed the abuse to occur.
Two more cases put the cherry on the cake in Wayne’s terrible year. In April, a gambling escort sought more than $15,000 in compensatory damages, lost tips, and punitive damages. She claimed she was illegally forced to share her advice with managers. More recently, a family filed a lawsuit against Wynn Las Vegas last week, claiming that employees failed to prevent their relative’s death while she was playing at the casino.
4. 888 collectibles
January share price: £93.65
December share price: £83
Decrease: 11%
888 Holdings has been in the VSO headlines over the past 12 months, and not for the right reasons. This contributed to the British company’s share price falling by 11% over the year.
The 888 problem started at the beginning of the year. From March 2022 to March 2023, shares fell a staggering 72%, including 48% in just the first three months of this year. In fact, these stocks sank so much that the company lost its place in the London Stock Exchange’s FTSE 250 index, the list of 250 mid-cap companies based in the United Kingdom.
The cases began in September 2021 when 888 secured the non-US assets of UK-based sports betting operator William Hill for £2.9 billion ($3.47 billion). This turned out to be a misguided acquisition since 888 completed the acquisition with money it did not have. The group announced that it would have to enter into debt worth $1.76 billion ($2.16 billion). This debt remains large despite the strenuous efforts made by 888 to reduce it.
The company also found itself in trouble in January regarding its VIP operations in the Middle East. An investigation revealed that the company did not follow best practices related to anti-money laundering and know-your-customer systems. Subsequently, CEO Itai Pazner resigned from his position with immediate effect after serving the company for two decades, four of which were spent as Chairman.
As if all this wasn’t bad enough, the UK Gambling Commission fined 888-owned William Hill a record £19.2 million ($23.6 million) in March.
Given all this, an 11% decline in the share price for 2023 isn’t very dramatic. The stock made a big rebound in April before gradually falling again.
3. Pennsylvania Entertainment
January stock price: $30.32
December stock price: $24.90
Decrease: 18%
Penn Entertainment seems to be a regular feature on our losers’ lists. The company took first place in 2021 when its stock fell 45% for the year and took third place last year when its stock price fell 34%. In good news for Pennsylvania executives, the company is improving year over year, with its stock down just 18% in 2023 — although that puts it in third place again.
Ben couldn’t wait to unload Barstool back to Portnoy
The highlight of Penn’s year came in August 2023 when it finally parted ways with Barstool Sports and its controversial owner Dave Portnoy. This failed venture proved that Ben couldn’t wait to offload Barstool back to Portnoy, as the latter paid just $1 to buy back 100% of Barstool’s shares. To put that into perspective, Ben paid $551 million for Barstool through multiple payments.
What is the reason for this loss? Partly to blame, Portnoy continues to court controversy, at odds with a traditional gaming brand like Penn. Interested in trade And The New York Times The pieces highlighted a series of sexual assault allegations from more than two dozen women. These allegations wiped out about $2.5 billion from Ben’s market value at the time.
Meanwhile, Barstool’s revenues have been hampered by a lack of access to key markets. This was undoubtedly linked to links to Portnoy, who admitted on X that the company had “been denied licenses because of me”. “A regulated industry is probably not the best place for Barstool Sports and the type of content we make,” he added.
Considering Barstool’s catastrophic failure, an 18% drop in Penn’s stock price may not seem so bad. This is because the company has a new sports betting venture, and this venture is backed by Disney-owned ESPN. The company signed a ten-year contract with Pennsylvania in August, which includes a $2 billion payment over the term.
2. Bali Company
January stock price: $19.48
December stock price: $12.37
Decrease: 36%
When looking at Bally’s Corporation’s recent quarterly results, you might be wrong to think that the company’s stock is booming. The company saw record companywide revenue of $632.5 million, up 9% year over year, including record casino revenue of $359 million, also up 9%. However, while it continues to perform on the ground, the company has faced problems elsewhere.
A staggering net loss of $428 million through its North American online arm in 2022
In January, the company announced it would have to cut the workforce at its online division by 15% after a nightmare year for Bally’s Interactive. The following month, Bally’s announced that it was seeking buyers for its online Monkey Knife Fight (MKF) brand as part of a restructuring effort. The move came after a staggering net loss of $428 million through its North American online arm in 2022.
Bally’s bought MKF for $90 million in 2021 with the hope it would form a key part of its online expansion. It was eventually forced to close the platform this year after failing to find a buyer. With this failure came a significant loss in investor confidence, with Bally’s stock price falling to a low of $8.65 in October of this year, a 56% decline from January.
Fortunately for Bally’s and its loyal investors, the past two months have seen an uptick in this stock. This was likely supported by promising third-quarter results and the opening of Chicago’s pop-up casino. However, even this Chicago project is still up in the air thanks to an investigation into the issuance of the company’s casino license.
1. Contain
January share price: £1,415
December share price: £825.26
Decrease: 42%
Finally, taking the top spot on our 2023 losers list…it’s Entain. The company’s stock price has fallen a staggering 42% this year. This all came to a head earlier this month when CEO Jette Nygaard Andersen resigned after investors expressed their feelings about her leadership. The stock price jumped 5% after this announcement.
HM Revenue & Customs decided that GVC had breached the Bribery Act 2010
Her tenure in charge has been tumultuous, certainly over the past 12 months, including a bribery scandal that cost the company millions of pounds. Entain agreed to pay £585 million ($743 million) in November for historic breaches in Turkey as part of its since-renamed global value chains business. HM Revenue & Customs decided that GVC had breached the Bribery Act 2010.
New safer gambling laws in the UK have also not been kind to the owner of Ladbrokes and Coral. Entain saw it lose £1 billion ($1.2 billion) of its market value in September, a loss the company blamed on revenues that were “lower than expected.” The new laws dictated by the White Paper on gambling reform have not yet been formally put in place, but Entain enacted them early and generated £110 million ($134 million) in revenue as a result.
To make matters worse, Entain now has more competition than ever in the UK market thanks to one of its partners. MGM Resorts International launched BetMGM in the UK in August. Operating under the LeoVegas brand, BetMGM UK is now in direct competition with Ladbrokes and Coral.
Entain is the fourth worst performing company in terms of total shareholder returns in the FTSE 100 over the past two years. Despite all this, the company is still holding on and has rejected two takeover offers from DraftKings and MGM.
Perhaps a change in leadership could give Entain a more optimistic outlook heading into 2024 following Nygaard-Andersen’s resignation. Whatever the case, the next twelve months will be crucial.
