Gabelli Bullish on Golden Entertainment, Wynn Resorts

Mario Gabelli, the chairman and chief executive officer of Gabelli Funds, is constructive on Golden Entertainment (NASDAQ: GDEN) and Wynn Resorts (NASDAQ: WYNN).

The pair of Las Vegas-based casino operators were among the fund manager’s seven stock picks in the latest edition of the Barron’s “Roundtable.” Gabelli was one of five panelists that doled out 34 investment ideas for this year and he was the only member of that quintet to highlight gaming stocks. He mentioned the royalty payments Golden Entertainment receives from the sale of its route business to J&J Gaming and the operator’s property holdings as potential catalysts for the shares.

Golden owns the Strat hotel casino on the Strip,” Gabelli told Barron’s. “It is a work in progress. But the company has nine extra acres of land across from the Strat, which are extremely valuable.”

In recent months, speculation has intensified that Golden could engage in a real estate transaction of some type this year in an effort to unlock value for shareholders. Much of that chatter has centered around the Strat, which actually isn’t on the Las Vegas Strip, but is near it. That casino hotel resort plus the additional acreage referenced by Gabelli represent the operator’s most valuable property holdings.

Gabelli Sees Upside for Wynn

Regarding Wynn Resorts, Gabelli sees potential in the stock by way of Tilman Fertitta’s nearly 10% stake in the company and its plans to open a casino hotel in the United Arab Emirates (UAE).

“The company’s net debt, ex-Macau, is $3.7 billion. Wynn has significant cash-flow and earnings power. The company has secured a gaming license in the United Arab Emirates and will own a stake in the Al Marjan Resort there,” added Gabelli.

Located in Ras Al Khaimah, UAE, Wynn Al Marjan Island will be the Middle East’s first casino resort and is scheduled to open in early 2027. Analysts have previously mentioned the project’s potential isn’t reflected in Wynn’s share price, indicating it could be a positive that Gabelli explicitly mentioned the UAE property.

Gabelli Likes Indirect Gaming Play, Too

Another one of Gabelli’s stock picks for this year is media giant Fox Corp. (NASDAQ: FOX). While that company doesn’t directly own casinos or sportsbooks, its leverage to the fast-growing online sports betting space was highlighted by the fund manager.

Fox owns 2.4% of Flutter Entertainment (NYSE: FLUT) and through that relationship, the media giant has rights to eventually purchase up to 18.6% of FanDuel — the largest internet sportsbook operator in the US.

Fox is currently in the process of obtaining state gaming permits that would position it to exercise the rights to the 18.6% interest in FanDuel.