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Gambling Executives Buy Up Stock as U.S. Rolls Out Sports Betting

Caesars is down 20% and Las Vegas Sands has slipped 3%, excluding dividend payments. All three are expected to benefit by different degrees from the Supreme Court’s decision in May invalidating the Professional Amateur Sports Protection Act (PASPA), and legalizing sports betting. Morgan Stanley analyst Thomas Allen wrote in a report at the time that, “Regional operators Boyd Gaming (BYD) and Penn National are likely the biggest beneficiaries in our coverage given their smaller market caps and exposure to numerous states.” In late June, Allen raised his target price on Las Vegas Sands by $1 to $86 to account for the “limited impact” U.S. sports betting will have on the firm, given its footprint and size. Las Vegas Sands gets 90% of its earnings before interest, taxes, depreciation and amortization from Asia, Allen noted, and is selling its lone non-Nevada U.S.

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