MarketLineIC GlobalCasinosGaming 030321

MarketLine Industry Profile
Global Casinos & Gaming

June 2020
Reference Code: 0199-2019
Publication Date: June 2020
WWW.MARKETLINE.COM
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Industry Profiles
1. Executive Summary
1.1. Market value

The global casinos & gaming sector grew by 1% in 2019 to reach a value of $457.5 billion.
1.2. Market value forecast

In 2024, the global casinos & gaming sector is forecast to have a value of $441.5 billion, a decrease of 3.5% since 2019.
1.3. Category segmentation

Casinos is the largest segment of the global casinos & gaming sector, accounting for 31.6% of the sector's total value.
1.4. Geography segmentation

Asia-pacific accounts for 44.7% of the global casinos & gaming sector value.
1.5. Market rivalry

The casinos and gambling sector is populated by a wide range of types of player. Players tend to specialize in a
segment and consequently, rivalry is assessed as moderate.
1.6. Competitive Landscape

The global casino & gaming sector experienced slow growth in 2019. The sector consists of four leading players, Las
Vegas Sands Corp, Galaxy Entertainment Group Ltd, MGM Resorts International and Caesars Entertainment
Corporation. The main sector players are based in the US and Hong Kong, which indicates the geographical diversity of
the players in the sector. Players are focused on serving a broad client base and mitigating the risk of operating in a
single market by operating a broad product portfolio. The recent outbreak of coronavirus has led to either the
cancellation or postponement of a number of major sporting events globally, which has disrupted growth in the
casinos & gaming sector significantly. Soccer, one of the most popular sporting events to bet on, has seen a number of
competitions postponed, including the English Premier League, La Liga, and the Champions League, which provide
lucrative markets for the sector. More recently, UEFA announced that Euro 2020 will now be postponed until 2021.
The decrease of sporting markets will undoubtedly have a negative impact on the sector, however the true extent of
the damage remains uncertain. The Tokyo 2020 Olympic Games has also been postponed for at least one year.

Industry Profiles
TABLE OF CONTENTS
1. Executive Summary 2
1.1. Market value ................................................................................................................................. 2
1.2. Market value forecast ...................................................................................................................2
1.3. Category segmentation ................................................................................................................2
1.4. Geography segmentation .............................................................................................................2
1.5. Market rivalry ................................................................................................................................ 2
1.6. Competitive Landscape ................................................................................................................2
2. Market Overview 7
2.1. Market definition ........................................................................................................................... 7
2.2. Market analysis ............................................................................................................................ 8
3. Market Data 9
3.1. Market value ................................................................................................................................. 9
4. Market Segmentation 10
4.1. Category segmentation ..............................................................................................................10
4.2. Geography segmentation ...........................................................................................................11
5. Market Outlook 12
5.1. Market value forecast .................................................................................................................12
6. Five Forces Analysis 13
6.1. Summary .................................................................................................................................... 13
6.2. Buyer power ............................................................................................................................... 14
6.3. Supplier power ........................................................................................................................... 16
6.4. New entrants .............................................................................................................................. 17
6.5. Threat of substitutes ...................................................................................................................19
6.6. Degree of rivalry ......................................................................................................................... 20
7. Competitive Landscape 21
7.1. Who are the leading players?.....................................................................................................21

Industry Profiles
7.2. What strategies do the leading players follow? ..........................................................................21
7.3. What has been the recent M&A activity? ...................................................................................22
8. Company Profiles 24
8.1. Las Vegas Sands Corp ..............................................................................................................24
8.2. MGM Resorts International ........................................................................................................27
8.3. Galaxy Entertainment Group Ltd ................................................................................................31
8.4. Caesars Entertainment Corporation ...........................................................................................34
9. Macroeconomic Indicators 39
9.1. Country data ............................................................................................................................... 39
Appendix 40
Methodology............................................................................................................................................ 40
9.2. Industry associations ..................................................................................................................41
9.3. Related MarketLine research .....................................................................................................41
About MarketLine .................................................................................................................................... 43

Industry Profiles
LIST OF TABLES
Table 1: Global casinos & gaming sector value: $ billion, 2015–19 9
Table 2: Global casinos & gaming sector category segmentation: $ billion, 2019 10
Table 3: Global casinos & gaming sector geography segmentation: $ billion, 2019 11
Table 4: Global casinos & gaming sector value forecast: $ billion, 2019–24 12
Table 5: Las Vegas Sands Corp: key facts 24
Table 6: Las Vegas Sands Corp: Annual Financial Ratios 25
Table 7: Las Vegas Sands Corp: Key Employees 26
Table 8: MGM Resorts International: key facts 27
Table 9: MGM Resorts International: Annual Financial Ratios 28
Table 10: MGM Resorts International: Annual Financial Ratios (Continued) 29
Table 11: MGM Resorts International: Key Employees 30
Table 12: Galaxy Entertainment Group Ltd: key facts 31
Table 13: Galaxy Entertainment Group Ltd: Annual Financial Ratios 32
Table 14: Galaxy Entertainment Group Ltd: Key Employees 33
Table 15: Caesars Entertainment Corporation: key facts 34
Table 16: Caesars Entertainment Corporation: Annual Financial Ratios 36
Table 17: Caesars Entertainment Corporation: Key Employees 37
Table 18: Caesars Entertainment Corporation: Key Employees Continued 38
Table 19: Global exchange rate, 2015–19 39

Industry Profiles
LIST OF FIGURES
Figure 1: Global casinos & gaming sector value: $ billion, 2015–19 9
Figure 2: Global casinos & gaming sector category segmentation: % share, by value, 2019 10
Figure 3: Global casinos & gaming sector geography segmentation: % share, by value, 2019 11
Figure 4: Global casinos & gaming sector value forecast: $ billion, 2019–24 12
Figure 5: Forces driving competition in the global casinos & gaming sector, 2019 13
Figure 6: Drivers of buyer power in the global casinos & gaming sector, 2019 14
Figure 7: Drivers of supplier power in the global casinos & gaming sector, 2019 16
Figure 8: Factors influencing the likelihood of new entrants in the global casinos & gaming sector, 2019 17
Figure 9: Factors influencing the threat of substitutes in the global casinos & gaming sector, 2019 19
Figure 10: Drivers of degree of rivalry in the global casinos & gaming sector, 2019 20

Industry Profiles
2. Market Overview
2.1. Market definition

The casinos and gaming market consists of all forms of betting and gaming. All values are stated in terms of gross
gaming win (GGR). This is the total amount waged by customers minus the total amount paid out to customers as
winnings, but before the payment of any applicable taxes, disbursements to charitable or other causes by games
established for those purposes, or other expenses.
The casinos segment covers all gambling activities carried out within casino establishments, such as card games,
roulette, and slot machines located in casinos; tips and admission fees are included, but additional revenues such as
sales of food, drink, and accommodation are excluded.
The lotteries segment covers all state, private, and charitable lotteries, and includes traditional draws, scratchcard
games, and similar products offered by lottery operators.
The sports betting and related segment covers gambling on the outcome of horse races, football matches, and other
events, and includes gambling services offered by bookmakers and also pari-mutuel/totalisator operators.
The other segment covers bingo, slot machines located outside casinos, pachinko, etc. In North America, so-called
'Indian casinos' are covered in this segment, not the casino segment.
Online casino and gaming activity, with the exception of online purchases of lottery entry, is not included. Recreation-
only slot machines that do not pay out any form of prize are excluded.
The report only includes gaming activities that are legal in the country where they are offered.
All currency conversions were calculated using constant average annual 2019 exchange rates.
Figures presented in this report are calculated applying the "middle path" scenario - this is based on the current
situation in countries where the epidemic burst first, like China as a model countries and the announcements made by
governments, stating that the abnormal situation may last up to six months.
The assumption has been made that after this time the economy will gradually go back to the levels recorded before
the pandemics by the end of the year. It is also assumed that there is no widespread economic crisis as seen back in
2008 due to announced pay-outs across countries.
At the moment of preparation of this report in May 2020 the economic implications of the lock downs of many
economics are still very difficult to predict as there is no indication how long the pandemics could last, the number of
sectors forced to stay closed and the scale of the governmental' aid involved. At the same time the weight of the
pandemic seriousness is applied on the individual countries in this report based on death to population ratio recorded
in countries.
Majority of the industries will see the decline in volume of the goods and services offered by companies. Usually the
lower demand would cause the decrease the prices level. However, amid many governments’ ordered for many
industries to lock down and so the supply chain is distorted that in great pictures mitigate the results of lower
demand.
Applied scenarios differ depending on the individual sector, however generally sectors which involves intensive
manual labor and face to face interaction seem to be hit the most by present situation. On the other hand the internet
based businesses as well as the producers of the vital, subsisted products and services seems to take advantages of
the current events.
For the purposes of this report, the global market consists of North America, South America, Europe, Asia-Pacific,
Middle East, South Africa and Nigeria.
North America consists of Canada, Mexico, and the United States.
South America comprises Argentina, Brazil, Chile, Colombia, and Peru.

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Europe comprises Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy,
Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland, Turkey, and the United Kingdom.
Scandinavia comprises Denmark, Finland, Norway, and Sweden.
Asia-Pacific comprises Australia, China, Hong Kong, India, Indonesia, Kazakhstan, Japan, Malaysia, New Zealand,
Pakistan, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam.
Middle East comprises Egypt, Israel, Saudi Arabia, and United Arab Emirates.
2.2. Market analysis

The global casinos & gaming sector has experienced volatile growth during the historic period. Growth in the sector is
expected to remain unstable and grow at a slow pace mainly due to the COVID-19 outbreak.
Growth in the casinos & gaming sector is highly correlated with regulations concerning gambling. Geographic areas
with relatively loose regulations would experience higher growth than areas with stricter regulation. The sector has
experienced huge disruption from online betting. The online gambling industry continues to go from strength to
strength, and is now a major threat to casinos. Customers are now able to play the same games, and have the same
chances of winning, from the comfort of their own home. This has left traditional casino chains vulnerable to online
specialists such as Bet365. Online operators offer online casino games which reduces footfall into casinos. Casinos rely
on food and drinks sales to generate additional revenue, and lower footfall will reduce this revenue stream.
The global casinos & gaming sector had total gross gaming win of $457.5bn in 2019, representing a compound annual
growth rate (CAGR) of 3% between 2015 and 2019. In comparison, the Asia-Pacific and US sectors grew with CAGRs of
1.6% and 2.2% respectively, over the same period, to reach respective values of $204.4bn and $156.1bn in 2019.
In Asia-Pacific, there has been strong growth in recent years, but the rate of growth is expected to slow in 2020 as
gamblers pull back amid an economic slowdown in China due to COVID-19. New Asian hot spots such as Japan are
poised to become more formidable rivals. There is uncertainty about how the Trump trade war will affect license re-
approvals for American operators Las Vegas Sands Corp., MGM Resorts International, and Wynn Resorts Ltd., whose
current Macau licenses will expire between 2020-2022.
The casinos segment was the sector's most lucrative in 2019, with total gross gaming win of $144.6bn, equivalent to
31.6% of the sector's overall value. The lotteries segment contributed gross gaming win of $129.0bn in 2019, equating
to 28.2% of the sector's aggregate value.
Casinos were the most profitable segment for the casino & gaming sector in 2019. Many customers also utilize other
services such as accommodation, food & drink, spas, and other leisure activities. Casino consumers enjoy a full-
package service rather than just gaming. Lotteries were the second most profitable segment for the casino & gaming
sector in 2019. Lotteries are more accessible to consumers, as they are often available in many different retail
establishments, rather than specialist facilities.
The performance of the sector is forecast to decline, with an anticipated compound annual rate of change (CARC) of -
0.7% for the five-year period 2019 - 2024, which is expected to drive the sector to a value of $441.5bn by the end of
2024. Comparatively, the Asia-Pacific and US sectors will decline with CARCs of -0.2% and -10.6% respectively, over
the same period, to reach respective values of $202.2bn and $89.3bn in 2024.
The recent outbreak of coronavirus has led to the cancellation and postponement of many major sporting events,
which has disrupted growth in the casinos & gaming sector significantly. Soccer, one of the most popular sporting
events to bet on, has seen a number of competitions postponed, including the English Premier League, La Liga, and
the Champions League, all of which are lucrative markets for the casinos & gaming sector. More recently, UEFA
announced that Euro 2020 will now be postponed until 2021, and Tokyo 2020 Olympic games has also been
postponed for at least one year. The decrease of sporting events will have a negative impact on the sector, however
the true extent remains uncertain.

Industry Profiles
3. Market Data
3.1. Market value

The global casinos & gaming sector grew by 1% in 2019 to reach a value of $457.5 billion.
The compound annual growth rate of the sector in the period 2015–19 was 3%.
Table 1: Global casinos & gaming sector value: $ billion, 2015–19
Year $ billion € billion % Growth

2015 407.2 456.1
2016 412.0 461.4 1.2%
2017 425.0 476.0 3.2%
2018 452.8 507.1 6.5%
2019 457.5 512.4 1.0%
CAGR: 2015–19 3.0%
SOURCE: MARKETLINE MARKETLINE
Figure 1: Global casinos & gaming sector value: $ billion, 2015–19

Industry Profiles
4. Market Segmentation
4.1. Category segmentation

Casinos is the largest segment of the global casinos & gaming sector, accounting for 31.6% of the sector's total value.
The Lotteries segment accounts for a further 28.2% of the sector.
Table 2: Global casinos & gaming sector category segmentation: $ billion, 2019
Category 2019 %
Casinos 144.6 31.6%
Lotteries 129.0 28.2%
Sports Betting And Related 111.5 24.4%
Other 72.4 15.8%
Total 457.5 100%
Figure 2: Global casinos & gaming sector category segmentation: % share, by value, 2019

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4.2. Geography segmentation

Asia-pacific accounts for 44.7% of the global casinos & gaming sector value.
United States accounts for a further 34.1% of the global sector.
Table 3: Global casinos & gaming sector geography segmentation: $ billion, 2019
Geography 2019 %
Asia-pacific 204.4 44.7
United States 156.1 34.1
Europe 90.5 19.8
Rest Of The World 6.4 1.4
Total 457.4 100%
Figure 3: Global casinos & gaming sector geography segmentation: % share, by value, 2019

Industry Profiles
5. Market Outlook
5.1. Market value forecast

In 2024, the global casinos & gaming sector is forecast to have a value of $441.5 billion, a decrease of 3.5% since 2019.
The compound annual rate of change of the sector in the period 2019–24 is predicted to be -0.7%.
Table 4: Global casinos & gaming sector value forecast: $ billion, 2019–24
Year $ billion € billion % Growth

2019 457.5 512.4 1.0%
2020 359.2 402.3 (21.5%)
2021 432.8 484.7 20.5%
2022 435.7 488.0 0.7%
2023 438.6 491.2 0.7%
2024 441.5 494.5 0.7%
CAGR: 2019–24 (0.7%)
Figure 4: Global casinos & gaming sector value forecast: $ billion, 2019–24

Industry Profiles
6. Five Forces Analysis

The casinos & gaming market will be analyzed taking operators of casinos, gaming machines, lotteries, and betting
(commercial, state-run and charitable operations) as players. The key buyers will be taken as individual customers,
and companies providing gaming machines, equipment, services, and real estate as the key suppliers.
6.1. Summary
Figure 5: Forces driving competition in the global casinos & gaming sector, 2019
The casinos and gambling sector is populated by a wide range of types of player. Players tend to specialize in a
segment and consequently, rivalry is assessed as moderate.
The casinos and gambling sector is subject to huge regional variations in regulation levels, with some countries
completely outlawing gambling, and others imposing very little regulation.
The existence of addictive forms of gambling behavior indicates that some consumers are not making rational
economic decisions and can become dependent on gambling in their everyday lives. Such patterns are evident in
many regions and weaken buyer power accordingly.
With regards to suppliers, size matters and a handful of suppliers dominate. Participants benefit from regulatory
barriers to entry, which make it difficult for new players to enter the sector and gain sector share. National operators
of gambling facilities are protected in some countries by restrictions placed upon international operators who wish to
enter the sector; thus limiting rivalry to some extent.
Almost any leisure activity can act as a substitute for casinos and gambling. However, the rapid growth of online
gaming in certain countries represents a significant threat to the traditional sector. As a result, the threat from
substitutes is assessed as very strong.

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6.2. Buyer power

Figure 6: Drivers of buyer power in the global casinos & gaming sector, 2019
The popularity of various gambling activities across the world mean the number of buyers is large and, in many
regions, still growing.
The wide variety of potential customers weakens buyer power in this sector considerably. Activities within this sector
are non-essential leisure activities, and consequently it should be expected that these activities are not vital to buyers.
However, this issue is complicated by gambling addictions. The existence of addictive gambling behavior indicates that
some consumers are not making rational economic decisions and can become dependent on gambling. Such patterns
are evident in many regions and weaken buyer power accordingly.
Consumers can choose from a wide range of gaming activities such as lotteries, gaming machines, poker, blackjack,
and sports betting. There are also several different methods of distribution (online, outlets, casinos etc.) However,
casinos tend to all possess the same activities, particularly in terms of the games that individuals can play and the
rewards they will receive for winning. Additionally, bar those who spend a substantial sum of money and gain loyalty
gifts (such as a free hotel suite for the biggest gamblers in Las Vegas); customers typically do not have any particular
loyalty to a casino brand. As such, buyer power is increased as there is no incentive to stick with a particular brand.
Sports betting offers a wide range of betting opportunities. The advent of bet-in-play options has seen sports betting
revenues grow significantly. Sports & events provide outcomes that gamers can wager on in the hope of picking the
correct result. The increasing popularity and coverage of sports is helping to drive interest as players feel better
informed and therefore more confident in their bets. Large events such as the FIFA World Cup attract greater-than-
normal volumes.
Lotteries are a significant percentage of the overall casinos & gaming sector globally. Lotteries are legal in many
countries in which other forms of gambling are not, such as Turkey for example, and there is often a high degree of
state involvement in the form of state entities as operators. In this way, the ongoing popularity and availability of
lotteries is critical to the health of the casinos & gaming sector. Casino games like roulette and blackjack have been
around for many years, but remain exciting to gamblers. Some of these games, such as roulette, are games of chance,
whereas poker requires a high level of skill to be highly successful. This is normally played in a tournament rather than
against the house, but casinos often serve as venues for these competitions and if they provide prize money, they
need to be aware of the skill levels present.
Switching costs for consumers vary according to the type of gambling. For example, many casinos require annual
membership fees; thus constituting a switching cost should a consumer change to a different casino before the annual

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membership expires. Generally switching costs remain minimal, particularly in the case of betting shops. This
strengthens buyer power.
Overall, there is a moderate degree of buyer power within the global casinos and gambling sector.

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6.3. Supplier power

Figure 7: Drivers of supplier power in the global casinos & gaming sector, 2019
Suppliers to the casinos and gambling sector vary according to the player. Gaming machines and related equipment
and services are vital for some players.
Companies that supply equipment, machinery, or services are integral to the success of players. There is a low
bargaining power of suppliers in the casinos and gambling sector because casinos often require furnishing and food
supplies, which are typically undifferentiated between rival suppliers. Large casino chains can exert pressure on small
suppliers to take advantages of pricing. Some large supply companies may offer equipment that has high consumer
demand, such as certain gaming machines. In many cases companies establish successful niches, creating lottery
machines and networks. There is little chance of backwards integration, as manufacturing machines requires a high
level of expertise. This enhances supplier power.
Casinos have very specific equipment due to the nature of the games they offer. Tables for games such as craps and
Baccarat are necessary and a high level of craftsmanship is required to achieve the required quality and aesthetic.
Casinos also need electronic and mechanical machines. Electronic versions of casino games are popular, particularly
among less affluent gamblers. For table games and roulette wheels, specialists such as Cammech and
TCSJOHNHUXLEY have forged a strong reputation, enhancing their power in this sector. Lotteries also have strong
incumbents, such as Smartplay International, which serves over 400 organizations in more than 85 countries.
Brick and mortar betting stores now use many fixed odds betting terminals (FOBTs), although these have come under
fire and are subject to changing regulations in the UK. These terminals can also be deployed in casinos and there has
been a surge in demand in recent years thanks to the high profit margins they offer. FOBTs represent a highly lucrative
revenue (and profit) stream for bookmakers and while the terms of supply between the machine manufacturers and
bookmakers are unclear, some industry insiders say that the machines are so lucrative that the manufacturers let the
shops have them for no charge, instead opting to take a percentage of up to 10% on bets wagered.
Larger suppliers diversify geographically to guard against over-dependence on just one particular sector. However,
most manufacturers of gaming machines tend to be specialized in this sector. Since the gaming industry is highly
important to their survival, this weakens supplier power.
Overall, supplier power is assessed as moderate.

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6.4. New entrants

Figure 8: Factors influencing the likelihood of new entrants in the global casinos & gaming sector, 2019
The casinos and gambling sector operates differently from country to country, according to regulatory and legislative
barriers, which often reflect the cultural acceptance of gambling in a particular country.
Historically, gambling has not been as widely accepted in Europe as in the US. Tax levies on players in many European
countries are higher than in other parts of the world; consequently, many players may wish to operate in other
geographies or operate online rather than be land-based. In Denmark, casinos and gambling halls are subject to a tax
which rises up to 75.0%. However, online operators in the country are only taxed at 20% of gambling revenue. Casino
tax in Germany is amongst the highest in Europe and varies by state. For example, in Hamburg, casino tax is set at 90%
of gross gaming win. In comparison, tax in the US varies; in Nevada the tax rate is graduated, starting at 6.75%, while
in Michigan, the tax rate is set at 19%.
In addition, there have been declines in revenue in some regions due to smoking bans, and a growing number of
competitors, such as slot arcades. Furthermore, the growth of online gambling in many countries is having an impact
on land-based casinos and gambling. Declines in some regions can also be attributed to many countries liberalizing
their gaming laws in combination with open borders and increased cross-border gambling. In Eastern Europe, casinos
positioned along the border with Western Europe, such as those in the Czech Republic and Poland, benefit from the
lower cost of local staff with “Western” money flowing across borders.
The situation looks different within the Asia-Pacific sectors. For example, gambling in mainland China is illegal. It is
only in recent years that many ordinary Chinese people have been permitted to visit Macau, where gambling is legal.
As such, the area is booming and is often described as ‘Asia’s Las Vegas.’ In mainland China, the lottery constitutes a
lucrative form of government-sanctioned gaming.
Though legislation has been passed to legalize casinos in Japan, as the government has identified it as a potentially
lucrative source of tax and tourism revenue, this is yet to come into play. The only gambling activities currently
allowed are horse racing, pachinko parlors, and state lotteries. At present, pachinko (a pinball game) is a substitute for
gambling in casinos. This game skirts Japan’s gambling ban because players exchange prizes for cash outside pachinko
parlors.
Entering the casino sector in India may also be hampered as it is regulated at a state level. Currently, only Goa, Sikkim,
and Daman allow casinos. Furthermore, foreign investment in the casinos and gambling sector in India is banned.
Other than lotteries, legal gambling in India is limited to betting on horse racing. Singapore lifted a 40-year ban on

Industry Profiles
casinos in 2005. The Marina Bay Sands casino opened in 2010, along with Genting’s Resorts World Casino. Russia
banned casinos in 2010 but has since set up five integrated gaming zones across the nation.
A new company wishing to enter the casinos and gambling sector would require fairly large amounts of capital to
establish a casino, betting shop or gaming hall, employ staff, and acquire gaming equipment. However, the willingness
of customers to switch from one gaming company to another, coupled with easy access to suppliers, are conducive to
the entry of new players.
The likelihood of new entrants remains moderate overall.

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6.5. Threat of substitutes

Figure 9: Factors influencing the threat of substitutes in the global casinos & gaming sector, 2019
For the casinos and gambling sector as a whole, almost any leisure activity can act as a substitute. These activities
have minimal switching costs and may also be cheaper than gambling for consumers.
The threat of substitutes is increasing. Low restrictions have resulted in the legalization of many forms of gambling.
Other forms of gambling such as tribal land casinos, internet-based casinos, and waterborne casinos may be attractive
to customers of traditional casinos. Aside from cost advantages, some customers may value the social aspect of non-
gambling forms of gaming facilities.
The global online gambling industry continues to go from strength to strength. Online gambling is a major threat to
casinos as players are able to play the same casino games from the comfort of their own home. This has left
traditional casino chains vulnerable to online specialists such as Bet365. These operators offer online casino games,
and brick and mortar casinos are losing out on footfall. Casinos rely on footfall to make money from food and drink
sales, and may face pressure on this additional revenue stream.
For those wishing to engage in an activity which offers the possibility of winning money, online gambling is an option.
Online gambling is a strong substitute.
The threat of substitutes in this sector is very strong.

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6.6. Degree of rivalry

Figure 10: Drivers of degree of rivalry in the global casinos & gaming sector, 2019
Generally, the casinos and gambling sector within the global market remains fragmented. However, in some
countries, it is dominated by a few large entities in specific segments, such as horse race betting, or state-owned
lottery monopolies. Additionally, high fixed costs and exit barriers (major tangible assets are specific to the sector, and
thus harder to divest) make competition even stronger.
Stagnant growth in the global casinos and gambling sector will increase rivalry.
For many players, gaming is their sole or principal activity, so it is vital that they maintain their gaming revenues. Some
companies, however, have a more diverse offering; which weakens rivalry somewhat. For example, casinos may be
incorporated into a more general leisure facility, such as a hotel. Some state lotteries are single-state while others
have multi-state range. Multi-state lotteries generally have larger jackpots due to the greater number of tickets sold.
Many players have the ability to differentiate their offerings through additional services, such as entertainment
(concerts, special events), reward programs, tournaments, or non-gaming facilities (restaurants, arcades, spas).
Cultural acceptance and gaming formats differ in particular countries. In the US, casinos and gambling machines are
the prevalent gambling formats, with sports betting limited to just four states, while in Japan, pachinko machines
dominate and casino gambling is yet to come to fruition. In Europe, lotteries remain the dominant revenue source for
the sector. These differing gambling formats equate to different degrees of rivalry.
Overall, rivalry within this sector is assessed as moderate.

Industry Profiles
7. Competitive Landscape
The global casino & gaming sector experienced slow growth in 2019. The sector consists of four leading players, Las
Vegas Sands Corp, Galaxy Entertainment Group Ltd, MGM Resorts International and Caesars Entertainment
Corporation. The main sector players are based in the US and Hong Kong, which indicates the geographical diversity of
the players in the sector. Players are focused on serving a broad client base and mitigating the risk of operating in a
single market by operating a broad product portfolio. The recent outbreak of coronavirus has led to either the
cancellation or postponement of a number of major sporting events globally, which has disrupted growth in the
casinos & gaming sector significantly. Soccer, one of the most popular sporting events to bet on, has seen a number of
competitions postponed, including the English Premier League, La Liga, and the Champions League, which provide
lucrative markets for the sector. More recently, UEFA announced that Euro 2020 will now be postponed until 2021.
The decrease of sporting markets will undoubtedly have a negative impact on the sector, however the true extent of
the damage remains uncertain. The Tokyo 2020 Olympic Games has also been postponed for at least one year.
7.1. Who are the leading players?

Las Vegas Sands Corp (LVSC) is the largest provider of casino & gaming services in the world with $36.9bn market cap.
The company is based in Las Vegas, the US and is a developer of global destination properties which feature
accommodation, entertainment and retail, gaming, convention and exhibition facilities, restaurants, and other
amenities. The company operates properties in the US, Singapore, and Macao. LVSC’s properties in Las Vegas include
The Venetian Las Vegas, The Palazzo, and the Sands Expo Center. The company’s properties in Macao include
Venetian Macao, The Parisian Macao, The Plaza Macao and Four Seasons Hotel Macao Sands Cotai Central, and Sands
Macao. It operates Sands Bethlehem hotel in Pennsylvania, and Marina Bay Sands hotel in Singapore.
Galaxy Entertainment Group Ltd (Galaxy Entertainment) is the second largest provider of casino & gaming services in
world with $29.3bn market cap. The company is based in Hong Kong and operates and develops hotels, gaming, and
integrated entertainment facilities in Macau. Galaxy Entertainment owns and operates StarWorld Hotel, a luxury five-
star property on the Macau peninsula. It also operates hotel under the Galaxy Macau trademark in Cotai; and an
entertainment and food street property, Broadway Macau. Apart from these, the company operates city club casinos
including Waldo Casino, President Casino and Rio Casino in Macau. It also produces and markets construction
materials including slag, concrete, pipes and piles, aggregates, sand, cement and related spare parts in China, Hong
Kong and Macau.
MGM Resorts International (MGM Resorts) is the third largest provider of casino & gaming services in the world with
$7.4bn. The company is based in Las Vegas, the US and owns and operates casino and non-casino resort projects
across the world. Its major business operations include gaming, hospitality and entertainment activities. The
company’s portfolio of destination resorts comprises of Bellagio, The Signature, MGM Grand, Mandalay Bay, The
Mirage, Monte Carlo, Luxor, Excalibur, New York-New York, Gold Strike Tunica, MGM Grand Detroit, MGM Springfield,
Beau Rivage and Circus Circus Las Vegas. MGM Resorts owns and operates properties in Nevada, Mississippi, New
Jersey and Michigan. Its operations are spread across the US, the UAE, China, and Vietnam.
Caesars Entertainment Corporation (Caesars or 'the company') is the fourth largest provider of casino & gaming
services in the world with $7.1bn market cap. The company is based in Las Vegas, the US and is a provider of
hospitality and entertainment services. Caesars also offers non-gaming entertainment options, beverage and food
outlets, hotel and convention space, gaming offerings. Caesars provides table games and slot machines. It also
provides race and sports books; keno, poker and restaurants, bars, buffets, nightclubs, and lounges. Caesars also
operates a gaming online division that provides mobile and social offerings and games with real money. Through
subsidiaries, it operates in the US. The company operates through Caesars Growth Properties and Entertainment
Resort Properties.
7.2. What strategies do the leading players follow?

Industry Profiles
LVSC's strong cash and liquidity position puts the company at an advantage while funding any potential market
opportunities. The company increased its cash and cash equivalents by 92.1%, current assets by 74.1%, and increase
in current liabilities by 6.8% in 2018. The increase in current assets and increase in cash and cash equivalent enhances
the working capital and short-term liquidity of the company, and improved liquidity indicators such as current ratio
and quick ratio. In 2018, LVSC reported a current ratio of 1.76, compared to 1.08 in 2017, and a quick ratio of 1.75,
compared to 1.08 in 2017.
Galaxy Entertainment is one of the leading gaming and entertainment company in Asia. The company operates three
flagship hotel properties: StarWorld Macau, Broadway Macau, and Galaxy Macau. It operates city club casinos
including Waldo Casino, President Casino, and Rio Casino in Macau. Galaxy Macau is an integrated resort offering
luxury lifestyle. It provides leisure and entertainment experience to its customers. Galaxy Macau offers guestrooms,
suites and floating villas through five hotels: Banyan Tree Macau, Okura Macau, Galaxy Hotel, JW Marriott Macau, and
the Ritz-Carlton, Macau. The company also focuses on manufacturing, selling, and distributing construction materials
such as granulated blast-furnace slag, cement, ready mixed concrete, pipes and piles, and aggregates in Macau, Hong
Kong and China.
MGM Resorts is able to enhance its operations through its strong property portfolio. The company owns and operates
28 resorts in the US. In Las Vegas, the company owns Bellagio, with 3,933 guestrooms and suites, 1,692 slots and 147
gaming tables; MGM Grand Las Vegas (including The Signature) with 6,071 rooms, 1,553 slot machines and 128
gaming tables; Mandalay Bay with 4,750 guestrooms and suites, 1,232 slot machines and 71 gaming tables; The
Mirage with 3,044 guestrooms and suites, 1,195 slots and 75 gaming table; Luxor with 4,397 guestrooms and suits,
1,049 slots with 53 gaming tables. Its New York-New York offers 2,024 guestrooms and 1,139 slots with 62 gaming
tables, Excalibur with 3,981guestrooms and suits, 1,161 slots and 50 gaming tables and Park MGM offers 2,898
guestrooms with 914 suits and 66 gaming tables. Its Regional properties include MGM Grand Detroit with 400 guest
rooms, 3,205 slots, and 134 gaming tables; Beau Rivage with 1,740 guest rooms, 1,811 slots, and 81 gaming tables,
Gold Strike with 1,133 guest rooms, 1,183 slots, and 68 gaming tables; Borgata with 2,767 guest rooms, 2,859 slots,
and 188 gaming tables, MGM National Harbor with 308 guestrooms, 3,137 slots, and 161 gaming tables, MGM
Springfield with 240 guest rooms, 1,814 slots, and 79 gaming tables. It also operates MGM Northfield Park and Empire
City with 2,200 and 4,671 slots, respectively in FY2019. Furthermore, MGM Macau had approximately 290 gaming
tables and over 1,085 slots, and around 582 guest rooms and suites; and MGM Cotai had 1,390 guestrooms, 1,154
slots, and 262 gaming tables. The company’s 50% owned CityCenter includes 126 gaming tables, 1,492 slots and 5,499
guest rooms and suites.
Caesars has strong presence in casino operations. A strong business presence in the casino entertainment market
gives the company a distinct advantage over its peers. The company’s portfolio of properties, including the properties
owned and operated by CEOC, represents one of the world’s most diversified casino-entertainment portfolios with
entertainment facilities in more areas throughout the US than any other player in the gaming industry. The different
types of casinos operated by Caesars include land-based casinos, riverboat casinos, harness racing facility casinos,
greyhound racing facility casinos and thoroughbred racing facility casinos. As of December 2018, the company
operated 53 casinos, of which 37 casinos were in the US. The company had 40,000 hotel rooms and over 3 million
square feet of gaming space. The company's properties operate under the Harrah's, Horseshoe, The LINQ, Bally’s, The
Cromwell, Flamingo, Paris, Planet Hollywood and Rio brand names.
7.3. What has been the recent M&A activity?

MGM Resorts agreed to partner with Buffalo Wild Wings, Inc, and Roar Digital LLC, owned by MGM Resorts
International and GVC Holdings Plc, to deliver sports gaming experiences inside Buffalo Wild Wings through MGM's
digital gaming platform, BetMGM. All companies involved in the transaction are based in the US. Buffalo Wild Wings is
an owner and operator of restaurants, while Roar Digital is a sports betting and online gaming venture. The
partnership will be supported by co-marketing initiatives from Buffalo Wild Wings and BetMGM including joint efforts
across digital and social media platforms. Buffalo Wild Wings and BetMGM will work together to encourage
responsible gaming practices in restaurant and via the BetMGM mobile app.
Eldorado Resorts, Inc. has received approval from Maryland State Lottery & Gaming Control Agency to acquire
Caesars. Under the terms of the agreement, Eldorado will acquire all of the outstanding shares of Caesars for a total

Industry Profiles
value of $12.75 per share, consisting of $8.40 per share in cash consideration and 0.0899 shares of Eldorado common
stock for each Caesars share of common stock, based on Eldorado’s 30-day volume weighted average price per share
as of May 23, 2019, reflecting total consideration of approximately $17.3bn, comprised of USD7.2 billion in cash,
approximately 77 million Eldorado common shares and the assumption of Caesars outstanding net debt (excluding
face value of the existing convertible note). Caesars' shareholders will be offered a consideration election mechanism
that is subject to proration pursuant to the definitive merger agreement. Giving effect to the transaction, Eldorado
and Caesars' shareholders will hold approximately 51% and 49% of the combined company's outstanding shares,
respectively. Upon completion of the transaction the combined company will retain the Caesars name to capitalize on
the value of the iconic global brand and its legacy of leadership in the global gaming industry. The new company will
continue to trade on the Nasdaq Global Select Market. The combined company’s Board of Directors will consist of 11
members, six from Eldorado’s Board of Directors and five from Caesars' Board of Directors.

Industry Profiles
8. Company Profiles
8.1. Las Vegas Sands Corp
8.1.1. Company Overview
Las Vegas Sands Corp (LVSC) is a developer of destination properties globally. These properties feature
accommodations, entertainment and retail, gaming, convention and exhibition facilities, restaurants and other
amenities. The company operates properties in the US, Singapore and Macao. LVSC’s properties in Las Vegas include
The Venetian Las Vegas, The Palazzo, and the Sands Expo Center. The company’s properties in Macao include
Venetian Macao, The Parisian Macao, The Plaza Macao and Four Seasons Hotel Macao Sands Cotai Central, and Sands
Macao and operates Marina Bay Sands hotel in Singapore. LVSC is headquartered in Las Vegas, Nevada, the US.
The company reported revenues of (US Dollars) US$13,739 million for the fiscal year ended December 2019 (FY2019),
an increase of 0.1% over FY2018. In FY2019, the company’s operating margin was 30.8%, compared to an operating
margin of 26.9% in FY2018. In FY2019, the company recorded a net margin of 19.6%, compared to a net margin of
17.6% in FY2018.The company reported revenues of US$1,782 million for the first quarter ended March 2020, a
decrease of 49.2% over the previous quarter.
8.1.2. Key Facts
Table 5: Las Vegas Sands Corp: key facts
Head office: 3355 Las Vegas Blvd S Rm 1ALAS VEGAS, Nevada, United States
Telephone: 17024141000
Number of Employees: 50000
Website: www.sands.com/
Financial year-end: December
Ticker: LVS
Stock exchange: New York Stock Exchange
SOURCE: COMPANY WEBSITE MARKETLINE
8.1.3. Business Description
Las Vegas Sands Corp (LVSC) is a developer, owner and operator of destination properties. Its properties feature
premium convention and exhibition facilities, retail stores, accommodations, gaming and entertainment, celebrity
chef restaurants and other facilities. The company operates resorts in the US, Singapore and Macao.
The company classifies its operations into three geographic segments: The US, Macao and Singapore.

Industry Profiles
Table 6: Las Vegas Sands Corp: Annual Financial Ratios
Key Ratios 2015 2016 2017 2018 2019

Growth Ratios
Sales Growth % -19.85 -3.57 12.93 7.86 0.07
Operating Income Growth % -30.34 -12.12 38.53 6.59 14.73
EBITDA Growth % -24.70 -6.01 28.00 3.56 12.68
Net Income Growth % -30.78 -14.61 67.24 -14.07 11.81
EPS Growth % -29.36 -11.93 31.87 16.47 -11.55
Working Capital Growth % -54.03 -74.50 -17.47 899.59 -13.62
Equity Ratios
EPS (Earnings per Share) USD 2.47 2.11 2.88 3.14 3.50
Dividend per Share USD 2.60 2.88 2.92 3.00 3.08
Dividend Cover Absolute 0.95 0.73 0.99 1.05 1.14
Book Value per Share USD 8.57 7.77 8.22 7.33 6.79
Profitability Ratios
Gross Margin % 47.67 49.55 50.27 49.20 50.27
Operating Margin % 24.31 22.15 27.18 26.86 30.79
Net Profit Margin % 16.82 14.90 22.06 17.58 19.64
Profit Markup % 91.08 98.22 101.11 96.86 101.10
PBT Margin (Profit Before Tax) % 22.43 20.09 23.99 24.23 27.45
Return on Equity % 28.84 27.18 43.29 42.45 52.01
Return on Capital Employed % 15.44 14.14 19.51 19.01 21.18
Return on Assets % 9.10 8.12 13.65 11.16 11.80
Return on Working Capital % 248.16 855.14 1435.27 153.05 203.27
Operating Costs (% of Sales) % 75.69 77.85 72.82 73.14 69.21
Administration Costs (% of Sales) % 14.09 16.38 13.31 12.35 13.68
Liquidity Ratios
Current Ratio Absolute 1.46 1.10 1.08 1.76 1.65
Quick Ratio Absolute 1.45 1.09 1.07 1.75 1.63
Cash Ratio Absolute 0.88 0.76 0.82 1.47 1.31
Leverage Ratios
Debt to Equity Ratio Absolute 1.37 1.55 1.49 2.11 2.41
Net Debt to Equity Absolute 1.05 1.21 1.11 1.29 1.59
Debt to Capital Ratio Absolute 0.58 0.61 0.60 0.68 0.71
Efficiency Ratios
Asset Turnover Absolute 0.54 0.55 0.62 0.64 0.60
Fixed Asset Turnover Absolute 0.69 0.66 0.75 0.83 0.82
Inventory Turnover Absolute 144.49 127.78 152.51 193.72 189.78
Current Asset Turnover Absolute 2.66 3.36 4.04 3.13 2.53
Capital Employed Turnover Absolute 0.64 0.64 0.72 0.71 0.69
Working Capital Turnover Absolute 10.21 38.60 52.81 5.70 6.60
SOURCE: COMPANY FILINGS MARKETLINE

Industry Profiles
Table 7: Las Vegas Sands Corp: Key Employees
Name Job Title Board

Charles A. Koppelman Director Non Executive Board
Charles D. Forman Director Non Executive Board
David F. Levi Director Non Executive Board
David Paterson Vice President Senior Management
George Jamieson Director Non Executive Board
Chief Operating Officer The Venetian, The
George Markantonis Palazzo, and Sands Expo and Convention Senior Management
Center
President The Venetian, The Palazzo, and
George Markantonis Senior Management
Sands Expo and Convention Center
George Tanasijevich Chief Executive Officer Marina Bay Sands Senior Management
George Tanasijevich President Marina Bay Sands Senior Management
Irwin Chafetz Director Non Executive Board
Lawrence "Lon" Jacobs Executive Vice President Senior Management
Lawrence "Lon" Jacobs General Counsel Global Senior Management
Lewis Kramer Director Non Executive Board
MichelineChau Director Non Executive Board
Patrick Dumont Chief Financial Officer Senior Management
Patrick Dumont Executive Vice President Senior Management
Robert G. Goldstein Chief Operating Officer Senior Management
Robert G. Goldstein President Senior Management
Sheldon G. Adelson Chairman Executive Board
Sheldon G. Adelson Chief Executive Officer Executive Board
Wilfred Wong Chief Operating Officer Sands China Ltd Senior Management
Wilfred Wong President Sands China Ltd Senior Management
Xuan Yan Director Non Executive Board

Industry Profiles
8.2. MGM Resorts International
MGM Resorts International (MGM Resorts) is a global hospitality company. The company owns and operates casino
and non-casino resort projects across the world. Its major business operations include gaming, hospitality and
entertainment activities. The company’s portfolio of destination resorts comprise of Bellagio, The Signature, MGM
Grand, Mandalay Bay, The Mirage, Monte Carlo, Luxor, Excalibur, New York-New York, Gold Strike Tunica, MGM
Grand Detroit, MGM Springfield, Beau Rivage and Circus Circus Las Vegas. MGM Resorts owns and operates
properties in Nevada, Mississippi, New Jersey and Michigan. Its operations are spread across the US, the UAE, China,
and Vietnam. MGM Resorts is headquartered in Las Vegas, Nevada, the US.
The company reported revenues of (US Dollars) US$11,763.1 million for the fiscal year ended December 2018
(FY2018), an increase of 8.9% over FY2017. In FY2018, the company’s operating margin was 12.5%, compared to an
operating margin of 15.9% in FY2017. In FY2018, the company recorded a net margin of 4%, compared to a net margin
of 18.1% in FY2017. The company reported revenues of US$3,223.2 million for the second quarter ended June 2019,
an increase of 1.5% over the previous quarter.
8.2.2. Key Facts
Table 8: MGM Resorts International: key facts
Head office: 3600 Las Vegas Blvd SLas Vegas, Nevada, United States
Website: www.mgmresorts.com
Ticker: MGM
Stock exchange: New York Stock Exchange
MGM Resorts International (MGM Resorts) owns and operates casino and non-casino destination resorts primarily in
the US. It offers gaming, hotel, dining, entertainment, retail and other resort amenities. The company own or invest in
various finest casino resorts across the world and reinvests in its own resorts to maintain its competitive position.
The company classifies its operations into four reportable segments: Las Vegas Strip Resorts, Regional Operations,
MGM China, and Corporate and Other.

Industry Profiles
Table 9: MGM Resorts International: Annual Financial Ratios
Key Ratios 2014 2015 2016 2017 2018

Growth Ratios
Sales Growth % -8.85 3.14 13.92 8.94 9.66
Operating Income Growth % -111.80 -17.60 -14.19 168.14
EBITDA Growth % -68.98 341.15 -7.57 -2.16 98.10
Net Income Growth % 77.39 -76.09 339.00
EPS Growth % 48.58 -35.59 -11.57 -42.74
Working Capital Growth % -144.86 -137.37 1093.63 -44.60 -293.38
Equity Ratios
EPS (Earnings per Share) USD -0.82 1.92 0.92 0.81 3.88
Dividend per Share USD 0.44 0.48 0.52
Dividend Cover Absolute 2.10 1.69 7.46
Book Value per Share USD 9.06 10.83 13.38 12.35 15.36
Gross Margin % 38.79 41.75 42.64 41.18 41.06
Operating Margin % -1.70 21.93 15.86 12.49 30.55
Net Profit Margin % -4.87 11.61 18.08 3.97 15.89
Profit Markup % 63.37 71.67 74.35 70.01 69.65
PBT Margin (Profit Before Tax) % -11.38 13.27 8.90 5.39 22.07
Return on Equity % -8.74 17.69 25.76 7.17 26.52
Return on Capital Employed % -0.68 8.03 6.58 5.39 12.84
Return on Assets % -1.73 4.12 6.81 1.57 6.39
Return on Working Capital % -91.47 482.71
Return on Working Capital % -91.47
Liquidity Ratios
Leverage Ratios
Debt to Equity Ratio Absolute 2.48 2.09 1.70 2.32 1.46
Net Debt to Equity Absolute 2.15 1.86 1.51 2.09 1.16
Efficiency Ratios

Industry Profiles
Table 10: MGM Resorts International: Annual Financial Ratios (Continued)
Key Ratios 2014 2015 2016 2017 2018

Working Capital Turnover Absolute 53.81 15.80
Working Capital Turnover Absolute 53.81

Industry Profiles
Table 11: MGM Resorts International: Key Employees

Alexis Margaret Herman Director Non Executive Board
Atif Rafiq President Commercial and Growth Senior Management
Bill Hornbuckle Chief Executive Officer Acting Senior Management
Bill Hornbuckle President Senior Management
Brian Sandoval President Global Gaming Development Senior Management
Chief Operating Officer Hard Rock Rocksino
Chris Kelley Senior Management
Northfield Park
Chris Kelley President Hard Rock Rocksino Northfield Park Senior Management
Corey I. Sanders Chief Financial Officer Senior Management
Corey I. Sanders Treasurer Senior Management
Daniel J. Taylor Director Non Executive Board
Senior Vice President Communications and
Debra DeShong Senior Management
Global Industry Affairs
Gregory M. Spierkel Director Non Executive Board
Jan Swartz Director Non Executive Board
John B. Kilroy, Jr. Director Non Executive Board
John M. McManus Executive Vice President Senior Management
John M. McManus General Counsel Senior Management
John M. McManus Secretary Senior Management
Jyoti Chopra Chief Diversity and Sustainability Officer Senior Management
Jyoti Chopra Senior Vice President Senior Management
Keith A. Meister Director Non Executive Board
Laura Lee Senior Vice President Human Resources Senior Management
Mary Chris Jammet Director Non Executive Board
Paul Salem Chairman Executive Board
Roland Hernandez Director Non Executive Board
Rose McKinney-James Director Non Executive Board
William W. Grounds Director Non Executive Board

Industry Profiles
8.3. Galaxy Entertainment Group Ltd
Galaxy Entertainment Group Ltd (Galaxy Entertainment) is a hospitality and gaming company. The company operates
and develops hotels, gaming and integrated entertainment facilities in Macau. Galaxy Entertainment owns and
operates StarWorld Hotel, a luxury five-star property on the Macau peninsula. It also operates hotel under the Galaxy
Macau trademark in Cotai; and an entertainment and food street property, Broadway Macau. Apart from these, the
company operates city club casinos including Waldo Casino, President Casino and Rio Casino in Macau. It also
produces and markets construction materials including slag, concrete, pipes and piles, aggregates, sand, cement and
related spare parts in China, Hong Kong and Macau. Galaxy Entertainment is headquartered in Central, Hong Kong.
The company reported revenues of (Hong Kong Dollars) HKD55,210.9 million for the fiscal year ended December 2018
(FY2018), an increase of 13.5% over FY2017. In FY2018, the company’s operating margin was 24.2%, compared to an
operating margin of 21.5% in FY2017. In FY2018, the company recorded a net margin of 24.5%, compared to a net
margin of 21.6% in FY2017.
8.3.2. Key Facts
Table 12: Galaxy Entertainment Group Ltd: key facts

Website: www.galaxyentertainment.com
Ticker: 27
Stock exchange: Hong Kong Stock Exchange
Galaxy Entertainment Group Limited (Galaxy Entertainment) develops and operates hotels and gaming facilities in
Macau. It also manufactures, sells and distributes construction material in China, Hong Kong and Macau. In FY2017,
the company had market capitalization of HKD270,120 million.
The company classifies its business operations into two reportable segments: Gaming and Entertainment; and
Construction Materials.

Industry Profiles
Table 13: Galaxy Entertainment Group Ltd: Annual Financial Ratios
Key Ratios 2014 2015 2016 2017 2018

Growth Ratios
Sales Growth % -28.94 3.60 -7.92 13.51 -5.99
Operating Income Growth % -59.94 51.16 65.33 27.92 -3.62
EBITDA Growth % -41.01 36.13 39.47 20.90 -2.06
Net Income Growth % -59.76 51.01 67.18 28.59 -3.45
EPS Growth % -59.56 50.31 68.45 26.29 -2.73
Working Capital Growth % -184.08 -454.86 -286.88 -21.76 -78.78
Equity Ratios
EPS (Earnings per Share) HKD 0.97 1.46 2.44 3.11 3.00
Book Value per Share HKD 9.65 10.85 12.88 14.40 16.98
Gross Margin % 24.18 28.56 37.03 37.32 39.20
Operating Margin % 8.20 11.96 21.48 24.21 24.82
Net Profit Margin % 8.16 11.89 21.60 24.47 25.13
Profit Markup % 31.89 39.97 58.80 59.55 64.48
PBT Margin (Profit Before Tax) % 8.25 12.02 21.85 24.66 25.59
Return on Equity % 10.12 13.56 18.93 21.69 17.72
Return on Capital Employed % 9.70 13.18 18.40 21.00 17.17
Return on Assets % 7.76 10.33 14.00 15.78 14.25
Return on Working Capital % 839.08 170.32
Return on Working Capital % 839.08
Liquidity Ratios
Leverage Ratios
Debt to Equity Ratio Absolute 0.02 0.01 0.01 0.01
Net Debt to Equity Absolute -0.17 -0.30 -0.14 -0.09 -0.19
Debt to Capital Ratio Absolute 0.02 0.01 0.01 0.01
Efficiency Ratios
Working Capital Turnover Absolute 57.70 14.24
Working Capital Turnover Absolute 57.70

Industry Profiles
Table 14: Galaxy Entertainment Group Ltd: Key Employees

Charles Cheung Wai Bun Director Non Executive Board
Edmond Ting Kwang Yuan Director Project Development Senior Management
Group Director-Human Resources and
Eileen Lui Wai Ling Senior Management
Administration
Francis Lui Yiu Tung Deputy Chairman Executive Board
James Houghton Director Information Systems and Technology Senior Management
James Ross Ancell Director Non Executive Board
Joey Pather Senior Vice President MICE Sector Senior Management
Joseph Chee Ying Keung Director Executive Board
Joseph Chee Ying Keung Managing Director Construction Materials Executive Board
Kevin Kelley Chief Operating Officer Macau Senior Management
Lui Che Woo Chairman Executive Board
Michael Victor Mecca Director Non Executive Board
Paddy Tang Lui Wai Director Executive Board
Patrick Wong Lung Tak Director Non Executive Board
Philip Cheng Yee Sing Director Senior Management
Raymond Kwok Mun Sang Senior Director-Legal Senior Management
Senior Director – International Premium and
Raymond Yap Yin Min Senior Management
Mass Market Development
Director Operations, Galaxy Macau and
Richard Longhurst Director – Gaming Development and Senior Management
Optimization Services
Robert Drake Chief Financial Officer Group Senior Management
Roland To Chi Kay Senior Director- Strategic Planning Senior Management
Scott Kreeger Director Operations Development, New Resort Senior Management
Ted Chan Ying Tat Chief Operating Officer Japan Development Senior Management
William Yip Shue Lam Director Non Executive Board

Industry Profiles
8.4. Caesars Entertainment Corporation
Caesars Entertainment Corporation (Caesars or 'the company') is a provider of hospitality and entertainment services.
The company also offers non-gaming entertainment options, beverage and food outlets, hotel and convention space,
gaming offerings. Caesars provides table games and slot machines. It also provides race and sports books; keno, poker
and restaurants, bars, buffets, nightclubs, and lounges. Caesars also owns gaming online division that provides mobile
and social offerings and games with real money. Through subsidiaries, it operates in the US. The company operates
through Caesars Growth Properties and Entertainment Resort Properties. The company is headquartered in Las Vegas,
Nevada, the US.
The company reported revenues of (US Dollars) US$8,391 million for the fiscal year ended December 2018 (FY2018),
an increase of 72.4% over FY2017. The operating profit of the company was US$738 million in FY2018, compared to
an operating loss of US$1,692 million in FY2017. The net profit of the company was US$303 million in FY2018,
compared to a net loss of US$368 million in FY2017. The company reported revenues of US$2,222 million for the
second quarter ended June 2019, an increase of 5.1% over the previous quarter.
8.4.2. Key Facts
Table 15: Caesars Entertainment Corporation: key facts
Head office: 1 Caesars Palace DrLas Vegas, Nevada, United States

Website: www.caesars.com
Ticker: CZR
Stock exchange: NASDAQ
Caesars Entertainment Corporation (Caesars or ‘the company’) provides hospitality and entertainment services. The
company provides gaming offerings, food and beverage outlets, convention space and hotel, and non-gaming
entertainment options. Caesars also owns gaming online division that provides mobile and social offerings and games
with real money.
As of December 2018, the company operated casinos which were 53 out of which 37 casinos are present in the US
including dockside casinos and riverboat that are land-based. Caesars land-based international casinos were 13;
operating 53 casinos across 14 US states and five other casinos outside the US. The company had 40,000 hotel rooms
and gaming space above 3 million square feet.
The company’s business is classified into three segments: Las Vegas, Other US and All Other. The Las Vegas segment
properties includes The LINQ Hotel & Casino, Paris Las Vegas, Planet Hollywood Resort & Casino, Bally's Las Vegas, The
Cromwell, Flamingo Las Vegas, Harrah's Las Vegas, Rio All-Suites Hotel & Casino, Caesars Palace Las Vega and LINQ
Promenade/High Roller. In FY2018, the segment had 23,160 Hotel Rooms and Suites, 800 table games and 8,880 slot
machines. In FY2018, the Las Vegas segment generated revenue of US$3,753 million, which accounted for 44.7% of
the company’s revenue. Under Other US segment the company’s properties include Harrah's Gulf Coast, Harrah's
Joliet, Harrah's Lake Tahoe, Harrah's Laughlin, Harrah's Louisiana Downs, Bally's Atlantic City, Caesars Atlantic City,
Harrah's Atlantic City, Harrah's Council Bluff, Harrah's Philadelphia, Harrah's Metropolis, Harrah's New Orleans and
Harrah's North Kansas City. It also includes Horseshoe Bossier City, Harrah's Reno, Harveys Lake Tahoe, Horseshoe

Industry Profiles
Tunica, Horseshoe Baltimore, Horseshoe Southern Indiana, Tunica Roadhouse, Horseshoe Council Bluff, and
Horseshoe Hammond. In FY2018, the segment had 12,440 Hotel Rooms and Suites, 1,610 table games and 29,500 slot
machines. In FY2018, the Other US segment generated revenue of US$4,047 million, which accounted for 48.3% of the
company’s revenue. Through All Other segment the company offers provides online, mobile, and social gaming
services through Caesars Interactive Entertainment (CIE). Its International properties includes Alea Glasgow; Alea
Nottingham; The Casino at the Empire; Emerald Safari; Manchester235; Playboy Club London; Rendezvous Brighton;
Rendezvous Southend-on-Sea and The Sportsman. The segment’s managed companies includes Caesars Cairo; Caesars
Windsor; Harrah's Ak-Chin; Harrah's Cherokee; Harrah's Cherokee Valley River; Harrah's Resort Southern California;
Horseshoe Baltimore; and The London Clubs Cairo-Ramses. In FY2017, the segment owned 190 Hotel Rooms and
Suites, 310 table games and 920 slot machines. It managed 4,360 Hotel Rooms and Suites, 630 table games and
11,670 slot machines. In FY2018, the All Other segment generated revenue of US$591 million, which accounted for
7% of the company’s revenue.

Industry Profiles
Table 16: Caesars Entertainment Corporation: Annual Financial Ratios
Key Ratios 2015 2016 2017 2018 2019

Growth Ratios
Sales Growth % -50.68 -1.32 25.56 72.37 4.18
Operating Income Growth % -185.66 -16.26
EBITDA Growth % 84862.50 -174.49 -12.96
Net Income Growth % -150.72 -494.39
EPS Growth % -244.53 -499.29
Working Capital Growth % -99.60 4661.40 -157.96 -83.15 106.04
Equity Ratios
EPS (Earnings per Share) USD 39.82 -44.03 -5.76 0.26 -1.77
Book Value per Share USD 6.81 -11.31 4.72 5.21 3.12
Gross Margin % 53.68 54.60 53.45 52.58 52.99
Operating Margin % 163.48 -141.91 -34.76 8.80 7.07
Net Profit Margin % 152.94 -78.62 -7.56 3.61 -13.67
Profit Markup % 115.88 120.28 114.83 110.88 112.70
PBT Margin (Profit Before Tax) % 146.27 -158.11 -48.69 2.18 -15.32
Return on Equity % 608.81 -11.41 9.32 -56.08
Return on Equity % 608.81
Return on Capital Employed % 63.03 -76.50 -7.18 3.10 2.65
Return on Assets % 33.82 -22.47 -1.82 1.18 -4.68
Return on Working Capital % -107.57 278.49 113.19
Operating Costs (% of Sales) % -63.48 241.91 134.76 91.20 92.93
Liquidity Ratios
Leverage Ratios
Debt to Equity Ratio Absolute 7.06
Debt to Equity Ratio Absolute 7.06 5.67 5.86 8.74
Net Debt to Equity Absolute 5.81 -3.19 4.87 5.40 7.92
Efficiency Ratios
Working Capital Turnover Absolute 3.09 31.66 16.01

Industry Profiles
Table 17: Caesars Entertainment Corporation: Key Employees

Anthony Rodio Chief Executive Officer Senior Management
Bob Morse President Hospitality Senior Management
Senior Vice President Analytics, Service and
Brent Lessing Senior Management
Continuous Improvement
Chris Holdren Chief Marketing Officer Senior Management
Chris Holdren Executive Vice President Senior Management
Executive Vice President Gaming and
Christian Stuart Senior Management
Interactive Entertainment
Christopher J. Williams Director Non Executive Board
David B. Sambur Director Non Executive Board
Denise M. Clark Director Non Executive Board
Don Kornstein Director Non Executive Board
Eric Hession Chief Financial Officer Senior Management
Eric Hession Executive Vice President Senior Management
James Hunt Chairman Non Executive Board
Jan Jones Blackhurst Director Executive Board
Executive Vice President Public Policy and
Jan Jones Blackhurst Executive Board
Corporate Responsibility
John Boushy Director Non Executive Board
John Dionne Director Non Executive Board
Les Ottolenghi Chief Information Officer Senior Management
Les Ottolenghi Executive Vice President Senior Management
Marco Roca Chief Development Officer Senior Management
Marco Roca President Global Development Senior Management
Mark P. Frissora Director Executive Board
Mark P. Frissora President Executive Board
Monica S. Digilio Chief Human Resources Officer Senior Management
Monica S. Digilio Executive Vice President Senior Management
Executive Vice President Communications
Richard D. Broome Senior Management
and Government Relations
Steven M. Tight President International Development Senior Management
Thomas Benninger Director Non Executive Board
Thomas M. Jenkin Global President of Destination Markets Senior Management
Timothy R. Donovan Chief Legal, Risk and Security Officer Senior Management

Industry Profiles
Table 18: Caesars Entertainment Corporation: Key Employees Continued

Timothy R. Donovan Executive Vice President Senior Management
Timothy R. Donovan General Counsel Senior Management

Industry Profiles
9. Macroeconomic Indicators
9.1. Country data
Table 19: Global exchange rate, 2015–19
Year Exchange rate (€/$)

2015 1.1095
2016 1.1068
2017 1.1320
2018 1.1810
2019 0.8929

Industry Profiles
Appendix
Methodology
MarketLine Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-
checked and presented in a consistent and accessible style.
Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by
analysis from industry experts using highly complex modeling & forecasting tools, MarketLine’s in-house databases
provide the foundation for all related industry profiles
Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company
profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market
overview
Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of
each definition are carefully reviewed at the start of the research process to ensure they match the requirements of
both the market and our clients
Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and
trends
MarketLine aggregates and analyzes a number of secondary information sources, including:
- National/Governmental statistics
- International data (official international sources)
- National and International trade associations
- Broker and analyst reports
- Company Annual Reports
- Business information libraries and databases
Modeling & forecasting tools – MarketLine has developed powerful tools that allow quantitative and qualitative data
to be combined with related macroeconomic and demographic drivers to create market models and forecasts, which
can then be refined according to specific competitive, regulatory and demand-related factors
Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date

Industry Profiles
9.2. Industry associations
9.2.1. American Gaming Association
1299 Pennsylvania Ave., NW, Suite 1175, Washington, D.C. 20004, USA
Tel.: 1 202 552 2675
Fax: 1 202 552 2676
www.americangaming.org
9.2.2. Asia Pacific Lottery Association (APLA)
74 Walters Drive, Osborne Park, Western Australia 6017

Tel.: 61 8 9340 5371
Fax: 61 8 9443 1464
www.asiapacific-lotteries.com
9.2.3. European Lotteries and Toto Association
The Secretary-General, Av. Béthusy 36, 1005 Lausanne

Tel.: 41 21 311 30 25
Fax: 41 21 312 30 11
www.european-lotteries.org
9.2.4. International Association of Gaming Regulators (IAGR)
www.iagr.org
9.2.5. World Lottery Association
Lange Gasse 20, CH-4002 Basel, Switzerland

Tel.: 41 61 284 1111
Fax: 41 61 284 1350
www.world-lotteries.org
9.3. Related MarketLine research
9.3.1. Industry Profile

Industry Profiles
Casinos & Gaming in the United States

Casinos & Gaming in Asia-Pacific
Casinos & Gaming in Europe
Casinos & Gaming in the United Kingdom

Industry Profiles
About MarketLine
In an information-rich world, finding facts you can rely upon isn’t always easy. MarketLine is the solution.
We make it our job to sort through the data and deliver accurate, up-to-date information on companies, industries
and countries across the world. No other business information company comes close to matching our sheer breadth
of coverage.
And unlike many of our competitors, we cut the ‘data padding’ and present information in easy-to-digest formats, so
you can absorb key facts in minutes, not hours.
What we do
Profiling all major companies, industries and geographies, MarketLine is one of the most prolific publishers of business
information today.
Our dedicated research professionals aggregate, analyze, and cross-check facts in line with our strict research
methodology, ensuring a constant stream of new and accurate information is added to MarketLine every day.
With stringent checks and controls to capture and validate the accuracy of our data, you can be confident in
MarketLine to deliver quality data in an instant.
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MarketLine Industry Profile

Global Casinos & Gaming

Reference Code: 0199-2019

Publication Date: June 2020

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 1

1.1. Market value

1.2. Market value forecast

1.3. Category segmentation

1.4. Geography segmentation

1.5. Market rivalry

1.6. Competitive Landscape

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 2

1.1. Market value ................................................................................................................................. 2

1.2. Market value forecast ...................................................................................................................2

1.3. Category segmentation ................................................................................................................2

1.4. Geography segmentation .............................................................................................................2

1.5. Market rivalry ................................................................................................................................ 2

1.6. Competitive Landscape ................................................................................................................2

2.1. Market definition ........................................................................................................................... 7

2.2. Market analysis ............................................................................................................................ 8

3.1. Market value ................................................................................................................................. 9

4.1. Category segmentation ..............................................................................................................10

4.2. Geography segmentation ...........................................................................................................11

5.1. Market value forecast .................................................................................................................12

6. Five Forces Analysis 13

6.1. Summary .................................................................................................................................... 13

6.2. Buyer power ............................................................................................................................... 14

6.3. Supplier power ........................................................................................................................... 16

6.4. New entrants .............................................................................................................................. 17

6.5. Threat of substitutes ...................................................................................................................19

6.6. Degree of rivalry ......................................................................................................................... 20

7.1. Who are the leading players?.....................................................................................................21

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 3

7.2. What strategies do the leading players follow? ..........................................................................21

7.3. What has been the recent M&A activity? ...................................................................................22

8.1. Las Vegas Sands Corp ..............................................................................................................24

8.2. MGM Resorts International ........................................................................................................27

8.3. Galaxy Entertainment Group Ltd ................................................................................................31

8.4. Caesars Entertainment Corporation ...........................................................................................34

9.1. Country data ............................................................................................................................... 39

9.2. Industry associations ..................................................................................................................41

9.3. Related MarketLine research .....................................................................................................41

About MarketLine .................................................................................................................................... 43

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 4

Table 5: Las Vegas Sands Corp: key facts 24

Table 6: Las Vegas Sands Corp: Annual Financial Ratios 25

Table 7: Las Vegas Sands Corp: Key Employees 26

Table 8: MGM Resorts International: key facts 27

Table 9: MGM Resorts International: Annual Financial Ratios 28

Table 10: MGM Resorts International: Annual Financial Ratios (Continued) 29

Table 11: MGM Resorts International: Key Employees 30

Table 12: Galaxy Entertainment Group Ltd: key facts 31

Table 13: Galaxy Entertainment Group Ltd: Annual Financial Ratios 32

Table 14: Galaxy Entertainment Group Ltd: Key Employees 33

Table 15: Caesars Entertainment Corporation: key facts 34

Table 16: Caesars Entertainment Corporation: Annual Financial Ratios 36

Table 17: Caesars Entertainment Corporation: Key Employees 37