Gambling industry is bulletproof says GLPI CEO Peter Carlino

In the world of finance and real estate, few sectors spark as much debate as the gambling industry. While some analysts warn of a cooling market, Peter Carlino, CEO of Gaming & Leisure Properties Inc. (GLPI), is pushing back against these concerns with remarkable clarity. During the company's second-quarter earnings call on July 31, he made it clear that he considers talk of weakening regional markets to be entirely unfounded. To him, the industry is not just stable but one of the safest investments imaginable.

Carlino uses language rarely found in corporate reports. He speaks of weeping and gnashing of teeth in the press that does not stand up to reality. People, according to his observations, do not simply give up their entertainment just because the headlines are negative. On the contrary, the enthusiasm in the markets is viscerally felt. This confidence is backed by hard facts: GLPI-financed projects, such as those for Penn Entertainment, are performing off the charts and exceeding all expectations. The company itself is in a position that has scarcely ever been better.

"Gaming revenue is bulletproof. Write that down." - Peter Carlino, CEO of Gaming & Leisure Properties Inc.

Numbers and facts

The financial power behind these statements is immense. GLPI is a Real Estate Investment Trust (REIT). This means the company owns the casino properties while partners like Penn Entertainment or Bally’s manage the actual gaming operations. A look at current projects reveals the scale: Bally’s stadium project in Las Vegas is valued at 1.2 billion dollars, while the Chicago venture is swallowing around 2 billion dollars. Even the massive Bally’s Bronx project in New York is estimated at 4 billion dollars, although GLPI is still waiting cautiously there.

An interesting point is the robustness of this model. During the 2020 pandemic, many retail mall landlords, who control about 70 percent of U.S. malls, had to negotiate rent abatements. Gaming REITs, however, continued to receive their rents on time. This is partly due to triple-net leases. In this arrangement, the tenant pays not only the rent but also taxes, insurance, and maintenance costs. For investors like Carlino, this means enormous planning security, as the risk of operational fluctuations lies primarily with the casino operator.

Background

The concept of the gaming REIT is relatively young. It was born in 2013 when Penn National Gaming spun off GLPI. Peter Carlino, who had led Penn for nearly 20 years, took the helm. At the time, it was a revolution to separate property ownership from gaming operations. Today, REITs control about 40 percent of U.S. gaming properties. Alongside GLPI, heavyweights like Vici Properties are active in the market, owning the famous Caesars Palace among others.

The discussion often centers on whether online gambling harms land-based casinos. Brandon Moore, COO of GLPI, takes a wait-and-see stance. In Pennsylvania, a state with a very liberal online offering, it is evident that brick-and-mortar properties continue to do well. Moore admits that iGaming may have slowed terrestrial growth slightly, but viability is by no means at risk. Tenants remain both willing and able to pay their rent.

Why it matters for German players

In Germany, the situation is more strictly regulated by the State Treaty on Gambling 2021 (GlüStV 2021) than in the U.S. Nevertheless, Carlino’s analysis of the market's resilience is also relevant here. German players also seek safe and regulated entertainment. The deposit limit of 1,000 euros per month across all providers and the stake limit of one euro per spin for online slots ensure a level of player protection often not found in this form in the U.S. The commonality lies in demand: the passion for gaming remains even in difficult economic times.

Players in Germany should ensure they only play with providers listed on the official whitelist of the Joint Gambling Authority of the States (GGL). These casinos are connected to the LUGAS system, which monitors compliance with limits, and offer maximum security through the OASIS exclusion database. While large real estate funds often operate in the background in the U.S., the focus in Germany is on state supervision and compliance with strict rules for youth and player protection. A bulletproof industry in Germany can only exist if legality is maintained.

What it means for GGL-licensed casinos

For German operators with a GGL license, Carlino’s assessment serves as a confirmation of long-term stability. The GGL whitelist is the seal of quality that distinguishes the legal market from the unregulated black market from Curacao or MGA providers without a German license. The stability Carlino speaks of can be achieved in Germany primarily through legal certainty. Companies that adhere to the rules of the GlüStV 2021 invest in a market that, while heavily regulated, is very stable due to high demand and state acceptance.

Operators who pay taxes in Germany and take player protection seriously are building on a foundation designed for durability, similar to U.S. real estate models. The focus here is less on speculative mega-projects like those in the Bronx or Las Vegas, but on the clean technical implementation of LUGAS and customer protection. Those who survive in this environment benefit from a loyal user base that appreciates the value of a safe gaming environment.