Trends with Benefits #43: How the Casino Industry Plans to Digitally Adapt with Howard Jay Klein
02 February 2021
In this episode, I chat with Howard Jay Klein about the casino and gaming industry including developments in sports betting, mobile betting and the outlook for traditional brick-and-mortar operators.
Playing the Odds
Howard is author of The House Edge casino investment site on SeekingAlpha. He has worked in casino and gaming for over 30 years working in management with all the big names you'd expect such as Ceasars, Ballys, and even the Trump Taj Mahal. So, he was a great person to talk to about stocks in the space.
Kind of amazing, but perhaps not surprising, is how a recession brings a material change in attitude. Sports betting has seemingly burst onto the scene in the last year, though the pieces were falling in place for several years now with the pivotal moment coming in 2018 when the U.S. Supreme Court struck down prior federal prohibitions against sports betting in states outside Nevada. Many states are still in the process of legalizing and activating operations. On January 6, 2021, New York Governor Andrew Cuomo announced a proposal to enable online sports wagering "at a time when New York faces a historic budget deficit due to the COVID-19 pandemic".
Kind of overshadowed by this excitement are the traditional operators of brick-and-mortar casinos and resorts, but they haven't gone anywhere. Obviously, COVID has had an impact on in-person revenues, but with roll out of a vaccine, will they see a revival and how will they adapt to a more digital and mobile world? Howard offers some great insights.
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