BYD - The Oakland A's may move to Las Vegas - these stocks could benefit

2023-04-21 07:43:43 ET

A planned move by the Oakland A's baseball organization to Las Vegas could have some positive implications for casinos in the region.

The A's have confirmed plans to build a $1.5B retractable roof stadium on a 49-acre parcel at the former Wild Wild West casino site sold owned by Red Rock Resorts ( NASDAQ: RRR ). In addition, the A's have an option to buy eight additional acres at the site. The deal price was not disclosed, but JMP Securities estimates the sale for the land went off in the $100M to $150M range.

CBRE Equity Research analyst John DeCree said another major professional sports team in Las Vegas adds to the long-term thesis for continued population growth and economic development in the region, which is a benefit to all Locals casino operators like Boyd Gaming ( BYD ), and Golden Entertainment ( GDEN ). Strip operators such as Caesars Entertainment ( CZR ), MGM Resorts ( MGM ), and Wynn Resorts ( WYNN ) are also expected to benefit if major events like the MLB All-Star Games come to Las Vegas or a land bridge across I-15 is built to the new stadium.

DeCree sees Red Rock Resorts ( RRR ) as the biggest casino stock winner from the Oakland A's moving to Las Vegas.

"In addition to benefiting from the overall economic development, RRR is cashing in on the sale of 49-acres of high value land while also retaining 43 acres at the site for future development or sale, which should benefit from price appreciation given the development of the A’s stadium. While RRR’s plans with the remaining acreage is unclear, it’s certainly a unique value creation event for the company."

The MLB still has to formally approve a move by the Oakland A's from its current location.

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