{"id":1515831,"date":"2021-12-17T09:40:14","date_gmt":"2021-12-17T14:40:14","guid":{"rendered":"https:\/\/www.vegasslotsonline.com\/news\/?p=129681"},"modified":"2021-12-17T09:40:14","modified_gmt":"2021-12-17T14:40:14","slug":"vso-analysis-penn-national-tops-list-of-us-gambling-sectors-biggest-2021-losers-as-share-price-tumbles-45","status":"publish","type":"station","link":"https:\/\/platogaming.com\/plato-data\/vso-analysis-penn-national-tops-list-of-us-gambling-sectors-biggest-2021-losers-as-share-price-tumbles-45\/","title":{"rendered":"VSO Analysis: Penn National Tops List of US Gambling Sector\u2019s Biggest 2021 Losers as Share Price Tumbles 45%"},"content":{"rendered":"
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In comparison to last year, 2021 has provided a little more stability for the US gambling industry. The rollout of vaccines has allowed local governments to reduce the number of restrictions, with some areas now completely free from limitations. Fans have returned to sports stadiums, punters are placing bets at racetracks, and Las Vegas casinos are flooded with gamblers once more.<\/p>\n
\nFrom outspoken CEOs to public scandals and lawsuits<\/p>\n<\/blockquote>\n
For some, however, the year has not brought the return to growth so desperately craved. Multiple American gambling companies have seen their share prices plummet since January, including operators involved in various verticals. From outspoken CEOs to public scandals and lawsuits, reasons for the lack of investor faith come in all shapes and sizes.<\/p>\n
As we approach the New Year, it\u2019s time to take stock of the gambling industry\u2019s 2021. To do so, VegasSlotsOnline News<\/em> has assessed year-to-date share prices of the sector\u2019s major players, creating a list of the five biggest losers in US gambling.<\/p>\n
5. Wynn Resorts<\/h2>\n
\nShare Price Jan 4: $106.9<\/p>\n
Share Price Dec 16: $80.56<\/p>\n
Percentage Loss: -25%<\/p><\/div>\n
Like much of the industry, US-based casino gambling powerhouse Wynn Resorts experienced a poor 2020, with its $2.1bn in revenue representing a 68% year-on-year drop. The company has undoubtedly seen some recovery this year, but Wynn\u2019s 2021 issues lay not in its US-focused business.<\/p>\n
Wynn\u2019s share price has dropped 25% for the year-to-date to $80.56, and this is mainly due to challenges faced by its China-based arm Wynn Macau. The Special Administrative Region is still struggling with the impact of the COVID-19 pandemic, only made worse by the new Omicron variant. China\u2019s COVID-zero policy has made life difficult in Macau, with strict travel limitations and testing requirements.<\/p>\n
Not only this, but the arrest of junket billionaire Alvin Chau<\/a> has also marred Wynn\u2019s Macau operations. Police took the Suncity Group CEO into custody in November over allegations including money laundering, and sources close to Wynn have confirmed the operator intends to shutter all its VIP rooms<\/a> by December 20 as a result. The closures will see around a third of the company\u2019s Macau staff axed.<\/p>\n
4. Las Vegas Sands<\/h2>\n
\nShare Price Jan 4: $57.95<\/p>\n
Share Price Dec 16: $35.11<\/p>\n
Percentage Loss: -39%<\/p><\/div>\n
Despite cementing its place among the giants of the US casino industry, Las Vegas Sands suffered throughout 2020 with full-year revenue dropping 74% year-on-year. Although the operator has seen an expected uptick in revenue in 2021, much like Wynn, LVS has struggled to mitigate ongoing issues relating to its Asian operations.<\/p>\n
\nagreed to sell its Sin City-based properties for a total of $6.25bn<\/p>\n<\/blockquote>\n
LVS announced that it intended to shift its focus to Asia<\/a> earlier this year. To this aim, the company agreed to sell its Sin City-based properties for a total of $6.25bn. Evidently, this strategy has had a negative impact on the operator\u2019s stock price. Since announcing that deal on March 3, LVS\u2019 shares have dropped 47%, with the price tanking 39% for the entire year-to-date to $35.11.<\/p>\n
There are a number of reasons for the current lack of faith in LVS\u2019 Macau plans, including the pandemic-related issues already noted. Added to this, the region\u2019s officials have kickstarted a regulatory overhaul process<\/a> which could see major changes to the sector, and all six of Macau\u2019s concessionaires will also need to apply for new licenses next year when they expire.<\/p>\n
As if this wasn\u2019t enough to dampen LVS\u2019 mood, the company is also facing a $12bn lawsuit from its former Macau partner<\/a>. Asian American Entertainment Corporation claims Sands breached the terms of a contract when it terminated their partnership in 2002. The company has decided to sue the US gambling giant for 70% of its Macau profits from 2004 to 2022.<\/p>\n