Positive Outlook on AGS
Fitch Ratings has delivered a stable prospect for AGS, assigning an initial ‘B+’ Issuer Default Rating while granting the company’s proposed first lien senior secured debt a ‘BB-‘ rating with a Recovery Rating of ‘RR3′. The ratings acknowledge AGS’s modest yet expanding presence in the gaming suppliers’ sector, underscored by a growing digital business and consistent free-cash-flow generation. The Rating Outlook remains stable, reflecting AGS’s capital market accessibility and potential expansion into new markets, while sustaining existing relationships. Explore more about AGS’s digital growth in this related article.
Future Directions for VICI and GLPI
Barry Jonas from Truist Securities shared insights after attending the National Association of Real Estate Investment Trusts meeting, analyzing the management strategies of VICI and GLPI. Despite challenges in the current deal environment, both companies remain hopeful about growth avenues in gaming and non-gaming transactions. Over the next year, an array of new transactions, spanning bolt-on to greenfield, may be announced. VICI and GLPI display strong cash flow stability and pipeline robustness, making them favorable investments. For broader insights into the REIT sector, check out the latest updates on the Legal Sports Report.
New York OSB Shows Positive Momentum
J.P. Morgan’s Estelle Weingrod analyzed the trends in New York’s online sports betting. The latest data up to June 1 revealed a substantial 43% increase in handle year-over-year and a 113% growth in gross gaming revenue (GGR), with a 13.1% hold rate, marking a 429 basis points rise. The second quarter performance up to June 1 displayed an 11% increase in handle and a 16% rise in GGR compared to the previous year, maintaining a stable growth trajectory for online sports betting in this region.
Boyd Gaming and Sportradar: Readings from Jefferies
Jefferies’ David Katz recaps insights following meetings with Boyd Gaming and Sportradar. Boyd Gaming shared strategic updates emphasizing disciplined capital management in mergers, acquisitions, internal investments, and share repurchases. With an optimal valuation estimate and moderate growth expectations, Boyd Gaming stands to hold a favorable industry position. For Sportradar, the outlook remains bullish, driven by robust growth in online sports betting revenue and stable major sports rights arrangements through 2029, securing future margin expansions.
