American Blackjack

About American Blackjack

Union deals have been a pressing topic for casino operators in recent years. Workers have pressed for increased benefits and job security provisions in the wake of macroeconomic uncertainty and the advent of potentially disruptive technologies like AI.

All nine of Atlantic City’s casinos agreed to new labour deals this summer without a strike, although its union opted for just one-year deals instead of the typical length of three or more years. This was in response to increased uncertainty related to looming competition from both New York City casinos and New Jersey’s own online gaming industry.

In Las Vegas, the Culinary Union has unionised the entire Las Vegas Strip and secured historic wage increases during the last round of negotiations. Those deals are about halfway done now, and Culinary is no stranger to strikes, having used them as leverage to secure new deals in the run-up to the inaugural Formula One Las Vegas Grand Prix in 2023 and and Super Bowl the following February.

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A third arbitration produced another award worth nearly $1.3 million, taking the amount Laos is seeking to more than $5 million.

Seven years later, Laos says it is still trying to collect.

That effort has led the government to Baldwin, Scott, and Bridge Capital, even though none was personally named as owing the money in the arbitration awards.

About American Blackjack

According to Multiples.VC, the average enterprise multiple (EV/EBITDA) of top US-listed gaming companies is currently 10x. Data from New York University last updated in January pegged the overall market average at 23.9x and 19.7x among EBITDA-positive firms, suggesting the sector is undervalued relative to other industries. In a report released Monday, Fitch Ratings said most North American gaming companies hold “Stable” outlooks with “adequate rating headroom” despite consumer headwinds.

Macquarie’s Beynon agrees with that sentiment, pointing to the relative stability of gaming companies through tough economic stretches such as the Covid-19 pandemic. Bankruptcies in the sector have been low relative to the broader market, he notes, and both land-based and digital companies have reason for optimism moving forward.

“It’s certainly not lost on us that this sector has underperformed for several years in a row just because it doesn’t have either the growth of say, tech companies, or the perceived free cash flow-insulated businesses, which we believe it does…We’ve thought there’s been value in the sector for a few years, particularly this year,” he told iGB.