Global Gaming Sector Quarterly: Global Market Resilient; Strong European, US Issuance; Online Exposed Names, Lottomatica, Flutter Demonstrate Strong Fundamentals, Future Growth Potential

Credit Research: Charlie Ward, Kyle Owusu, CFA Relevant Item: Gaming Sector Review December 2023 This edition of the global gaming quarterly report sets out the key sector developments during the first quarter of 2024 and includes relative value between the major issuers in the sub-investment grade space in Europe and in the U.S. It also highlights, for all issuers in the sector covered by Reorg, primary debt market activity, upcoming debt maturities and rating actions from the credit ratings agencies. This installment follows up on our report published in December where we covered developments across U.S. casinos, the online, sports betting and gaming technology segments, as well as the European gaming landscape.   Key Takeaways   European gaming credits generally trade wide relative to their relevant rating indexes, while U.S. credits generally trade tight or in line with index levels: Online exposed names such as Lottomatica tend to offer good value on account of their higher growth potential, and room for margin expansion, as these names shift from a “build” to “consolidate” strategy. U.S. credits generally trade tight or in line with index levels. With its double-digit yield and deleveraging potential caused in part by the growth of its online[...]