Will Private Equity Roll The Dice On Casinos?

Will private equity firms follow Wilbur Ross into the casino sector, despite the troubled track record of Station, Harrah’s, Twin Rivers, etc?

It would seem to make perfect sense from a “buy low” perspective, given the confluence of factors like rock-bottom commercial real estate values and misery consumers. But there also are challenges, not the least of which is a limited universe of potential players and high fixed costs (which are partially offset by low tech/innovation risk). My thoughts below, from the laundry room: