By Nicolas Fonseca, CFA, ETF Product Analyst
The gaming industry is poised for a recovery as distribution of the COVID vaccine continues to improve. Travel and tourism is experiencing an uptick and Las Vegas’ casinos are set to return to a 50% occupancy limit by mid-March. The VanEck Vectors Gaming ETF (BJK) has benefitted as well, and has been slowly gaining assets and now sits at over $133M as of March 3, 2021.
Large cap casinos stocks have been posting strong returns, due in part to:
- Macau casino stocks (Las Vegas Sands, Sands China and Wynn, among others) benefited after casinos reopened to quarantine free travel from mainland China. Macau had been slowly easing restrictions and optimism grew after the Chinese New Year. Analysts at Bernstein and JPMorgan estimate that gross gaming revenue (GGR) in Macau was $726 million through the first days of February. However, it appears to have accelerated over the past week. There may be potential room for further growth, as travel and tourism is still down as compared to previous years.
BJK: Macau Exposure – February 2021
- PENN/Barstool Sports announced it had entered into an agreement with Rush Street Interactive to access the New York State sports betting market, pending legislation and regulatory approvals.
- March Madness is right around the corner (March 18 thru April 9), and with it, the first time ever that people around the U.S. will be able to legally bet on it. Expectations are high.
Investing in Gaming Stocks
BJK seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVIS Global Gaming Index, which is intended to track the overall performance of companies involved in casinos and casino hotels, sports betting, lottery services, gaming services, gaming technology and gaming equipment.
Originally published by VanEck, 3/4/21
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