Tilman Fertitta is one of the most powerful forces in the US casino and restaurant business. According to new reports, he’s considering taking some of his biggest companies public. It now seems that we could soon see a new IPO for Golden Nugget take place next year.
It comes at an interesting time. The US casino industry is still hurting badly from the regulations placed around the country. Today, we’ll talk about why Fertitta is considering this move and what it means for his company.
Let’s get into it!
US Casino Revenue Continues to Drop Heading into 2021
Prior to 2020, it seemed as if the US casino industry was heading into a new golden age. Gaming revenue was increasing around the country. Several states including New Jersey saw their casino earnings increase thanks to the legalization of sports betting.
All of the progress being made here over the years came to a halt in March of this year. That month, the country’s casinos were ordered to shut down. Health experts began warning that failing to do so could result in a surge of hospitalizations and deaths.
These mass casino shutdowns impacted certain cities and states more than others. Places like Nevada, as many expected, took an enormous hit from the casino shutdowns. The economy in Las Vegas relies heavily on this industry.
Unfortunately, things still haven’t recovered. Most casinos around the country opened over the summer, yet continue to see huge drops in revenue. Some have recently been ordered to close again due to another surge in infections and hospitalizations.
The winter months could make this situation even more difficult. Many health experts are warning that another surge in infections is on its way. It wouldn’t be a shock to see major casino destinations being forced to shut down once again.
Casino owners are doing everything they can to increase their revenue flow. We’re now beginning to hear about a big move from Tilman Fertitta.
Here’s What We Know About the Rumored IPO for Golden Nugget
Most gamblers around the US have heard of Golden Nugget before. This brand has casinos all around the United States. That includes one of the oldest and most successful gambling properties in Downtown Las Vegas.
The Golden Nugget brand is controlled by Landry’s Inc. This company is owned and operated by Tilman Fertitta. For years, analysts have questioned whether or not Fertitta would ever take this empire public.
The CEO pushed against these ideas for years. It now seems that is changing now. A recent report from Bloomberg indicates that Fertitta is considering an IPO for Golden Nugget sometime in the near future.
Fertitta seems to be in serious talks with other company officials about this decision. Going public would likely earn these companies billions of dollars. Fertitta would retain more than 50% of the company’s shares, allowing him to retain control.
The pandemic has taken a massive toll on Fertitta’s empire this year. It will be fascinating to see whether or not the IPO for Golden Nugget ends up taking place. It could push other private gaming companies to do the same.
There’s no doubt that the country’s major casino companies are hurting right now. Fortunately, sports betting revenue is helping to bring these companies some much-needed revenue.
States Continue to See Jumps in Sports Betting Revenue
The US casino industry is in an extremely unusual place right now. Every state is now warning that their casinos could be forced to shut down once again. The ones that are currently open are operating at limited capacity and implement intense safety regulations.
Over in Las Vegas, many of the major casinos are now beginning to shut down during certain days of the week. That includes the Encore Las Vegas and Park MGM. The owners of these properties claim there aren’t enough visitors to remain open 24/7.
That doesn’t mean the entire US gambling industry is dead, though. More than half of the states in the country have now legalized sports betting. This is becoming a very profitable industry for all of the states with sportsbooks up and running.
That’s particularly true with the states offering regulated online sports betting. Colorado, for example, just saw more than $210 million in sports betting handle last month. This generated $17.4 million in gross gaming revenue.
These massive sports betting revenue figures are expected to increase as the months go on. Many casino companies are now shifting their focus more towards online sports gambling options.
There is a lot happening with the country’s gambling industry right now. Will you be surprised to see an IPO for Golden Nugget? Let us know in the comments section below!