Ten gaming companies traveled to Boston for the 13th yearly Truist Securities GLL Summit last week. Truist analyst Barry Jonas boiled the event down for investors in a November 24 report.
The number-one topic, according to Jonas, was prediction markets. Diversified gaming operators were said to be opting for a wait-and-see stance, seeing how the online sports betting (OSB) leaders fared with event contracts.
DraftKings told attendees its prediction-market product would go live in December or January and only in states that don’t have OSB. DraftKings leadership “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 might be spurred to legalize the activity and that tax increases in OSB-enabled states could be discouraged.
The OSB giant’s business plan was “reasonable investment and shorter payback periods in prediction, given uncertainty on how the market evolves.” Profit margins were expected to be greater than for OSB, considering 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 fear of losing existing licenses and said they were keeping in touch with state regulators vis-a-vis their plans. Operators invested in brick-and-mortar casinos were described as being content to let DraftKings take the initial risk, feeling cautious themselves.
Stronger convention business and a potent sports calendar were said to be buoying the fourth quarter of 2025 on the Las Vegas Strip, with the Las Vegas Grand Prix cited as a bright spot. MGM Resorts International reported sequential improvement in business, but Caesars Entertainment didn’t. It pointed to “lingering leisure softness” dampening hotel occupancies and room prices.
Caesars’s trepidation extended through 2026, as it expected little cash-flow growth. Others were confident that the convention and event calendars would lift the first six months of the new year. For Caesars to be more optimistic, execs said, there would have to be comebacks in business from Canada and southern California, as well as a return of low-end customers.
By contrast, regional operators described consistently strong business, particularly 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 effects of the 43-day shutdown of the federal government were said to be negligible, aside from MGM complaining that the cessation “didn’t help” MGM National Harbor on Washington, D.C.’s doorstep. The regional promotional climate was said to be rational, with little significant activity outside of Caesars targeted spending.
A discernible area of increased activity was said to be mergers and acquisitions. Both Gaming & Leisure Properties and Vici Properties discerned potential new opportunities ahead. “Both companies are also in a strong position … with plenty of liquidity and either at the low-end/or below their respective leverage targets,” said Jonas, who maintanted Buy ratings on real estate investment trusts (REITs).
On a REIT-related note, Jonas observed that Caesars was working with Vici to find a new solution to its rent concerns. The analyst felt one would be achieved sooner than later and without Vici having to reduce its rents.
For its part, GLPI expressed confidence in Bally’s Chicago, even if the Windy City were 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 also looking to the southeastern United States for new, long-term gaming opportunities.
Other companies in attendance at the summit were Accel Entertainment, Churchill Downs, Light & Wonder, Penn Entertainment, Sportradar Group, and Wynn Resorts.
