Las Vegas offers the promise of getting rich. In most cases, that’s a false promise as the house usually wins, but you can make money on Sin City without throwing any dice, playing cards, or taking a turn at the slot machines. Las Vegas has a surprising number of investment options and the best one might be a company you’ve never heard of (or maybe never realized was public).
Everyone knows the big casino operators. You can buy shares in Las Vegas Strip leaders Caesars Entertainment (CZR) – Get Caesars Entertainment Inc Report, MGM Resorts International (MGM) – Get MGM Resorts International Report, and Wynn Resorts (WYNN) – Get Wynn Resorts, Limited Report. Many people do that getting exposure to not just the Strip but to all sorts of regional properties operated by Caesars and MGM. Wynn, of course, has interests in Macau and all three companies are global players.
On the Strip, however, one company actually owns the underlying real estate where Caesars and MGM actually just operate the properties. Running a casino or a hotel comes with risk. What if people don’t come, don’t gamble as much as expected, or spend less on shows, eating, and everything else?
As a landlord, VICI Properties (VICI) – Get VICI Properties Inc Report collects its rents no matter how crowded the casino buildings and hotels it owns are. That’s a pretty attractive business, and VICI has built itself into the largest owner of hotel and convention space in the United States.
It has also just joined the S&P 500, joining Caesars, MGM, Wynn, Las Vegas Sands (LVS) – Get Las Vegas Sands Corp. Report, and Penn National Gaming (PENN) – Get Penn National Gaming, Inc. Report as Vegas leaders that are part of the S&P 500.
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VICI Dominates the Las Vegas Strip
VICI bought the Venetian as well as its associated Expo and Convention Center in 2021. That was followed by its $17.2 billion takeover of MGM Growth Properties, which closed in late April.
Those two deals make the Real Estate Investment Trust (REIT) a huge player on the Strip even though its name isn’t on any marquees. …