Timeless Tales of the Gaming World: Insights from the CDC

At the conclusion of each year, media organizations release the top stories from every sector and every location. These compilations of major stories rely on the perspectives of journalists, commentators, and analysts. In 2018, for instance, I curated my personal compilation of significant gaming stories. My list included sports wagering, newly launched East Coast casinos, “me too,” the fall of Steve Wynn, and REITs. It was subjective, yet undoubtedly, sports wagering and Steve Wynn would have appeared on the majority of gaming compilations.

This year, the announcements emerged as they typically do, but with a notable alteration. The current compilation of the most favored stories is determined by clicks rather than subjective evaluations. CDC Gaming has utilized this clicking mechanism for several years and no longer requests that I assemble my version. I am unsure if this method is superior, but it is certainly more democratic. The audience determines the outcome; it follows the new artificial intelligence trend. The approach has yet to mold CDC Gaming’s content. However, it is transforming local media content in various regions, similar to its more commercial version in advertising, which offers increased purchasing choices based on prior purchases.

However, I remain entrenched in the traditional method. While sifting through my documents, I stumbled upon a few columns that retained some relevance. Ten years back, my column featured several substantial stories. In Atlantic City, four casinos shuttered as casino earnings continued to decline following the Great Recession and competition from Pennsylvania. Caesars was teetering on the brink of declaring bankruptcy. Its financial difficulties led to Carl Icahn acquiring the company and subsequently selling it to Eldorado Resorts. The process took some time, but today’s Caesars emerged from that merger. During that year, IGT merged with GTECH, a transaction that was ultimately undone in 2024.

Overall, while the Great Recession had concluded, it continued to affect casino revenues across the board in Las Vegas, which had an exceptional year in 2014. That same year, New York and Massachusetts advanced towards the opening of casinos, with seven in the former and three in the latter. In Asia, Macau faced a downturn, hitting a wall due to the crackdown by the Chinese government that began in June, causing revenues to plummet. Gaming revenue was $28 billion in 2024; back in 2013, it had peaked at $45 billion.

In general, 2014 presented numerous challenges for the gaming sector. Four years later, the storyline shifted significantly. In 2018, the Supreme Court revoked the Professional and Amateur Sports Protection Act of 1992. Swiftly, New Jersey, West Virginia, Rhode Island, Mississippi, and Pennsylvania commenced taking sports bets. Simultaneously, the National Basketball Association, National Hockey League, and Major League Baseball partnered with gaming organizations, while media companies pursued similar endeavors. Everyone sought to join in.

For the past six and a half years, this excitement has persisted. It has been one of the prominent stories each year. Beginning in 2018, with five states offering legal sports betting generating $4.5 billion in wagers, it has expanded to 33 states reporting $150 billion in handle, $14 billion in gross gaming revenue, and $2.9 billion in taxes by 2024. The aggregates since inception amount to $439 billion in handle, $38 billion in GGR, and $7 billion in taxes.

Additionally, 2018 saw the emergence of new casinos in Maryland, Massachusetts, New York, and New Jersey. Two casinos, Hard Rock and Ocean City, reopened under new identities in Atlantic City. Pennsylvania sanctioned 10 new mini-casinos, VLTs in truck stops, igaming, and sports wagering. By year-end, it seemed gaming had weathered the recession and was back on a trajectory of growth. However, this resurgence lasted just two years, but 2018 and 2019 were exceedingly productive for the industry. Then, COVID transformed gaming dramatically, both in the immediate and long-term contexts.

Another significant advancement in 2018 was real estate investment trusts (REITs) becoming central to gaming negotiations. Every major deal in the industry throughout 2018 involved a REIT element. Boyd, MGM, Eldorado, and Caesars all concluded deals with REIT partners. Interestingly, Deutsche Bank analyst Carlo Santarelli predicts that 2025 will be another year for REIT-related activities: “We view the deal landscape in 2025 primarily influenced by the interest-rate environment. We believe a potential recession in 2025 could ignite deal activity with operators more inclined to sell and interest rates likely making acquisitions more appealing for gaming REITs.”

And finally, another noteworthy event from 2018 was Steve Wynn’s departure from the gaming industry. Wynn found himself ensnared in the “me too” predicament that led to the downfall of numerous high-profile executives. He resigned from the company he established, divested all his shares, and left town. Phil Satre was brought in to restore the company’s reputation. This effort succeeded, and Wynn Resorts launched Encore Boston Harbor, renewed its license in Macau, obtained a license in the United Arab Emirates, and positioned itself favorably for one of the three licenses in New York City. In essence, 2014 and 2018 have had enduring impacts. Both remain relevant in 2024 and seem poised to leave a mark in 2025.