Thursday, April 30, 2015

REIT's and Gaming


REIT's have become an enormous influence on the Gaming industry, and an increasingly popular, large, cash flow option for struggling casinos. While the possibility of a debt-free bailout is enticing, handing over control of the real estate on which your business is depending is not without risks. Casinos depend on their facilities to complement the entire customer experience. "Penn National Gaming was the first to launch a REIT when it spun off Gaming and Leisure Properties. Recently, Caesars Entertainment has proposed a REIT in the  bankruptcy restructuring of its subsidiary, and Pinnacle Entertainment has talked about launching or selling to a REIT, even getting an offer from GLPI." 
http://www.fool.com/investing/general/2015/04/22/how-reits-could-destroy-the-gaming-industry.aspx

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