Casinos are going to rebound, and poker players are ready to ride the uphill climb
One of the sectors that have been beaten up the most by the current status quo of the coronavirus pandemic is the casino industry. Share prices for this segment have been in a downward spiral since casinos were closed down temporarily in an effort to stop the virus from spreading, but last week they had a significant jump in the prices, climbing as much as 30% with the whole industry moving noticeably higher. On April 7, during that same day, the euphoria wore off, and the final increase was just a single digit, which it is still good considering how hard has it been for casinos the last few weeks. Noticing the changes that are coming, poker players are all too happy to start buying casino stocks, ready for the explosion.
Among the big winners in the casino stock market were Caesars Entertainment, Eldorado Resorts and MGM Resorts International, which experienced two-digit growth. However, by the end of that business day, they all ended up in a single-digit increase. According to the experts in the area, this euphoric reaction was in response to the authorities looking with a lot of hope the option to reopening business and commercial activity sooner than expected.
Meanwhile, the land-based gambling market is still trying to figure out which facilities will survive the crisis and return to normal and an estimated date to do so. Last Monday, hopes were up a little bit when the number of confirmed cases of COVID-19 went down for the first time since coronavirus hit the country, which led investors to think that the worst part was over.
As a result of the movement, poker players have turned into savvy investors, ready to make their winnings work for them. With stocks having dropped as much as 60%, all analysts recognize that they’ll return to the levels they enjoyed previously. When that happens, the return on investment will rival that of some poker games.