Is There a Casino ETF?

As the popularity of casino gambling has grown in recent years, so too has the number of investors interested in profiting from the industry. Unfortunately, there is no ETF specifically devoted to casinos.

However, there are a number of ways for investors to get exposure to the casino industry.

The most direct way to invest in casinos is through the shares of companies that own and operate them. The largest publicly traded casino operator in the world is Las Vegas Sands Corp (LVS), which owns properties on the Las Vegas Strip, Macau, and Singapore.

Wynn Resorts (WYNN) and MGM Resorts International (MGM) are two other major casino operators with a presence in Las Vegas and Asia.

These companies also tend to have sizable hotel businesses, which can provide some diversification away from pure gambling operations. For example, Las Vegas Sands generated nearly 60% of its revenue from its hotels and convention center business in 2015.

Another way to get exposure to casinos is through gaming equipment manufacturers like International Game Technology (IGT) and Scientific Games Corporation (SGMS). These companies make the slot machines and other gaming equipment used by casinos around the world.

While their business is somewhat dependent on the overall health of the casino industry, they also benefit from new construction projects as casinos look to replace older equipment with newer models.

Investors looking for a more indirect way to profit from casinos can consider investing in companies that could benefit from increased tourism to gambling destinations. For example, air carriers like Southwest Airlines (LUV) and Allegiant Travel Company (ALGT) offer service to many of the major gambling markets in the U.S.

, including Las Vegas, Reno, and Atlantic City. Hotel chains like Marriott International (MAR) and Hilton Worldwide Holdings (HLT) also have a significant presence in these markets.

The casino industry has shown impressive growth in recent years, but it remains a relatively small part of the overall economy. As such, there is no ETF specifically devoted to casinos at this time.

However, investors looking for exposure to the industry can consider investing in casino operators, gaming equipment manufacturers, or companies that could benefit from increased tourism to gambling destinations.