There is one big question I have regarding Evo that I can't seem to answer, despite having researched Evo myself and read many people's write-ups on it (and asked them this question): what percentage of their revenue comes from standard casino games (blackjack, roulette, baccarat, poker, craps)?
I think this question is of utmost importance because, despite what management and other investors say, I just struggle to believe that they really have enough of a moat in this space that a well-funded, experienced competitor - like LV Sands - couldn't come and eat away at their insane profit margins. When I look at the incredible machines produced by industrial companies who have zero moat, it just doesn't make sense to me that running this live casino operation is harder.
On the other hand, I can much more readily believe that their proprietary games business (your Lightning whatevers, Starbursts and so on) have a pretty good moat.
That's great, but I still don't have an answer to what proportion of their revenue comes from these games. I feel like that's an important and fairly basic piece of info that I would like to know before investing in this business, and yet none of the investors I ask seem to know.
I would hesitate to take DK failing to do it to mean the moat is enormous and Las Vegas Sands will certainly fail too.
There is one big question I have regarding Evo that I can't seem to answer, despite having researched Evo myself and read many people's write-ups on it (and asked them this question): what percentage of their revenue comes from standard casino games (blackjack, roulette, baccarat, poker, craps)?
I think this question is of utmost importance because, despite what management and other investors say, I just struggle to believe that they really have enough of a moat in this space that a well-funded, experienced competitor - like LV Sands - couldn't come and eat away at their insane profit margins. When I look at the incredible machines produced by industrial companies who have zero moat, it just doesn't make sense to me that running this live casino operation is harder.
On the other hand, I can much more readily believe that their proprietary games business (your Lightning whatevers, Starbursts and so on) have a pretty good moat.
Any idea?
I would recommend listening to the full episode and looking at this post: https://x.com/JerryCap/status/1853043451090129260
That's great, but I still don't have an answer to what proportion of their revenue comes from these games. I feel like that's an important and fairly basic piece of info that I would like to know before investing in this business, and yet none of the investors I ask seem to know.
I would hesitate to take DK failing to do it to mean the moat is enormous and Las Vegas Sands will certainly fail too.