Editing Gaming and Leisure Properties, Inc.
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== Executive Summary == | == Executive Summary == | ||
* There are two gaming REITs, GLPI and VICI properties, both of whom had a good year in 2022, with returns of 13.49% and 14.26% respectively - in the top 5 for performance of all REITs. | * There are two gaming REITs, GLPI and VICI properties, both of whom had a good year in 2022, with returns of 13.49% and 14.26% respectively - in the top 5 for performance of all REITs. | ||
* Despite challenging economic conditions due to COVID-19 lockdowns and an impending recession, the gambling market is experiencing growth. | * Despite challenging economic conditions due to COVID-19 lockdowns and an impending recession, the gambling market is experiencing growth. | ||
* | * The US holds a leading position in the land-based casino segment in terms of revenue, and many of the largest global casino operators are based in the US. | ||
* Online gambling growth is a primary driver of the industry's expansion. Europe currently holds the largest market share, but the US exhibits the highest growth rates in revenue and user numbers. It is anticipated that the US will surpass Europe's total user count and align its user base with the rest of the world (excluding Europe). | * Online gambling growth is a primary driver of the industry's expansion. Europe currently holds the largest market share, but the US exhibits the highest growth rates in revenue and user numbers. It is anticipated that the US will surpass Europe's total user count and align its user base with the rest of the world (excluding Europe). | ||
* The growth of online gambling, including Live Casino, is not expected to negatively impact the land-based casino market. Instead, it serves as a catalyst. Online platforms attract casual and non-gamblers who might find traditional casinos intimidating. The availability of free demo versions online, where individuals can engage with simulated money, is a draw for early-stage gamblers. | * The growth of online gambling, including Live Casino, is not expected to negatively impact the land-based casino market. Instead, it serves as a catalyst. Online platforms attract casual and non-gamblers who might find traditional casinos intimidating. The availability of free demo versions online, where individuals can engage with simulated money, is a draw for early-stage gamblers. | ||
* Casinos are transitioning into comprehensive entertainment centers, offering diverse amenities and services. This appeals to non-gamblers who may not be interested in gambling itself but are enticed by the immersive gambling environment. (See 'Reasons for visiting a casino') | * Casinos are transitioning into comprehensive entertainment centers, offering diverse amenities and services. This appeals to non-gamblers who may not be interested in gambling itself but are enticed by the immersive gambling environment. (See 'Reasons for visiting a casino') | ||
* GLPI owns properties leased by gaming operators, exposing them to the gambling industry's performance. However, due to the adaptability of real estate to market shifts, potential downsides resulting from significant changes in the gambling sector could be mitigated. If necessary, GLPI's properties could be repurposed to target alternative markets, such as the industrial sector. | * GLPI owns properties leased by gaming operators, exposing them to the gambling industry's performance. However, due to the adaptability of real estate to market shifts, potential downsides resulting from significant changes in the gambling sector could be mitigated. If necessary, GLPI's properties could be repurposed to target alternative markets, such as the industrial sector. | ||
== GLPI's market == | == GLPI's market == |