Prediction markets dominate gaming summit in Boston — CDC Gaming

Ten gaming firms traveled to Boston for the thirteenth yearly Truist Securities GLL Summit final week. Truist analyst Barry Jonas boiled the occasion down for buyers in a November 24 report.

The number-one subject, in response to Jonas, was prediction markets. Diversified gaming operators had been stated to be choosing a wait-and-see stance, seeing how the web sports activities betting (OSB) leaders fared with occasion contracts.

DraftKings instructed attendees its prediction-market product would go stay in December or January and solely in states that don’t have OSB. DraftKings management “maintains the view that predictive will be less attractive to the casual sports bettor, given exposure to sharp trading and a lack of promotional allowance,” Jonas reported. He added that non-OSB states is likely to be spurred to legalize the exercise and that tax will increase in OSB-enabled states could possibly be discouraged.

The OSB big’s marketing strategy was “reasonable investment and shorter payback periods in prediction, given uncertainty on how the market evolves.” Profit margins had been anticipated to be better than for OSB, contemplating that the “overall net fee on each side of contract is more than a traditional OSB vig along with more limited promotional allowances.”

DraftKings executives expressed no concern of dropping present licenses and stated they had been conserving in contact with state regulators vis-a-vis their plans. Operators invested in brick-and-mortar casinos had been described as being content material to let DraftKings take the preliminary danger, feeling cautious themselves.

Stronger conference enterprise and a potent sports activities calendar had been stated to be buoying the fourth quarter of 2025 on the Las Vegas Strip, with the Las Vegas Grand Prix cited as a vivid spot. MGM Resorts International reported sequential enchancment in enterprise, however Caesars Entertainment didn’t. It pointed to “lingering leisure softness” dampening resort occupancies and room costs.

Caesars’s trepidation prolonged by way of 2026, because it anticipated little cash-flow development. Others had been assured that the conference and occasion calendars would elevate the primary six months of the brand new 12 months. For Caesars to be extra optimistic, execs stated, there must be comebacks in enterprise from Canada and southern California, in addition to a return of low-end clients.

By distinction, regional operators described constantly robust enterprise, significantly in October. “Aside from potential trade down benefits, one operator attributed Regional strength to the value proposition of casinos with relatively minimal price increases over the past couple of years compared to other consumer discretionary offering,” Jonas reported.

The results of the 43-day shutdown of the federal authorities had been stated to be negligible, other than MGM complaining that the cessation “didn’t help” MGM National Harbor on Washington, D.C.’s doorstep. The regional promotional local weather was stated to be rational, with little vital exercise exterior of Caesars focused spending.

A discernible space of elevated exercise was stated to be mergers and acquisitions. Both Gaming & Leisure Properties and Vici Properties discerned potential new alternatives forward. “Both companies are also in a strong position … with plenty of liquidity and either at the low-end/or below their respective leverage targets,” stated Jonas, who maintanted Buy rankings on actual property funding trusts (REITs).

On a REIT-related observe, Jonas noticed that Caesars was working with Vici to discover a new answer to its lease issues. The analyst felt one could be achieved prior to later and with out Vici having to scale back its rents.

For its half, GLPI expressed confidence in Bally’s Chicago, even when the Windy City had been to legalize slot routes. But with regard to Bally’s Las Vegas, GLPI “appeared more cautious given the challenges in offering a truly differentiated product in that market.” It was additionally trying to the southeastern United States for brand spanking new, long-term gaming alternatives.

Other firms in attendance on the summit had been Accel Entertainment, Churchill Downs, Light & Wonder, Penn Entertainment, Sportradar Group, and Wynn Resorts.