Gaming Sector Review: Daily Rates and Online Businesses Support Growth in Global Gaming Companies in Third Quarter While Retail Decelerates, Leverage Declines Across Most Borrowers, Interest Coverage Holds up

Credit Research: Charlie Ward, Kyle Owusu Relevant Items: Gaming Sector Review (PDF Format) Reorg is launching a quarterly global report focused on the gaming sector, highlighting key data points and developments relevant to high-yield and leveraged loan issuers. To see the report in a print-friendly format, click HERE. A relative value discussion will follow. The global sub-investment grade gaming market has continued to grow in the third quarter even as consumer confidence has remained subdued, however, the expansion has shown signs of deceleration. This report covers developments across U.S. and Asian casinos, the online, sports betting and gaming technology segments, as well as the European gaming landscape. For the purposes of this analysis, we have split the global gaming market into six segments: Online and Sports Betting; Casino; Other Land-based Gaming; Gaming Tech; and Other, as shown in the table below which covers the global gaming borrowers. There is a bias among the U.S. issuers toward casinos and gaming technology, which dominate the large capital structures, while European groups are significantly more exposed to online and sports betting, which have been growth areas in the U.S since the legalization of sports betting across a number of jurisdictions. The land-based revenue[...]