Wall Street Says the Caesars and MGM Deals Are Just the Beginning — Here Are the Casino Stocks Analysts Are Watching Next

Two landmark casino acquisitions in the span of a single week have Wall Street analysts placing bets on which gaming companies could be next. Fertitta Entertainment reached a definitive agreement to acquire Caesars Entertainment for $31 per share, implying a total deal value of $17.6 billion, while People Inc. submitted a non-binding $18 billion proposal to acquire all outstanding shares of MGM Resorts International it does not already own. Together, the moves have triggered the most active period of gaming sector M&A speculation since Las Vegas Sands explored a sale of its Nevada assets several years ago.

CBRE Director of Equity Research John DeCree described the current environment as ripe for further leveraged buyout and management buyout activity, citing strong free cash flow generation, proven revenue durability, depressed public market valuations, and what he characterized as a reasonable interest-rate environment despite geopolitical uncertainty. DeCree identified Accel Entertainment, Entain, Melco Entertainment, MGM Resorts, and PENN Entertainment as companies that appear undervalued by public markets and could attract private equity or strategic interest in the near term. Truist Financial analyst Barry Jonas noted the Caesars deal represents the needed catalyst for incremental M&A activity across the sector.

MGM Is the Central Variable

MGM Resorts occupies a unique position in the current M&A landscape. People Inc. already owns 26.1% of the company, giving it significant influence without full control. DeCree noted that MGM has been aggressively repurchasing its own shares, a pattern consistent with a company moving toward eventual privatization. However, MGM’s complex structure, which includes the 50% BetMGM sports betting joint venture with Entain, a major resort development project in Japan, and ongoing Macau operations, adds layers of complexity for any potential external bidder. If People Inc.’s offer is accepted, analysts believe the new ownership would likely move to consolidate BetMGM by buying out Entain’s stake, a transaction that could further reshape the US online sports betting landscape. BetMGM is among the top three sportsbooks in the country; bettors can review the current platform through the BetMGM sportsbook review.

For Caesars, the go-shop period running through July 11 gives the board latitude to consider alternative acquisition proposals. Analysts at Stifel downgraded Caesars to Hold following the announcement but acknowledged that other suitors stepping in for the full company would be relatively unlikely given the total deal value of $17.6 billion. More probable, according to Stifel, is that individual operators bid for specific Caesars property assets as part of a larger transaction conclusion. The Caesars sportsbook is one of the most widely used in legal US states; users who want to track developments can review the Caesars sportsbook review for ongoing platform updates.

PENN and Entain in the Spotlight

PENN Entertainment, which operates ESPN Bet and a significant land-based casino portfolio, was identified by DeCree as a potential take-private target given depressed valuations and its substantial digital presence through the ESPN Bet licensing arrangement. Entain has separately resurfaced in private equity speculation, partly because its 50% BetMGM stake has significant standalone value and any MGM ownership change could trigger a reassessment of the joint venture structure. Wall Street is watching June and July closely for any additional formal proposals or rumors that could accelerate the current consolidation trend.