Tom Waterhouse of Waterhouse VC outlines the ongoing competitive position of physical gambling venues amid recent industry acquisitions. The analysis follows proposed buyouts of MGM Resorts and Caesars Entertainment by major hospitality investors.
Investment Activity and Asset Valuation
Barry Diller’s People Inc submitted an offer to acquire the remaining MGM Resorts stake, assigning the company a value exceeding $18B. Tilman Fertitta simultaneously agreed to purchase Caesars Entertainment for $17.6B. Both transactions remain pending. Investment capital is currently directed toward artificial intelligence development, which accelerates game production, personalization and scaling. Physical venues are frequently categorized as legacy holdings, yet Diller classifies them as tangible assets that automated systems cannot readily duplicate.Regulatory Frameworks and Digital Comparison
Gambling operations depend on regulatory frameworks that determine venue locations, approved products and customer access conditions. Physical casinos retain control over licensing, geographic presence and direct staff interaction. MGM plans to open an integrated resort in Osaka around 2030, while newly licensed facilities in the UAE follow a similar development model. Authorities utilize limited physical gaming permits to support regional tourism and hospitality sectors. Digital platforms provide immediate smartphone access, real-time player tracking and rapid content deployment. Online studios can release new titles within weeks and distribute them across multiple networks simultaneously. SPRIBE’s Aviator title currently handles hundreds of thousands of wagers per minute. European online gambling revenue reached €47.9B in 2024, representing 39% of the sector according to EGBA estimates. The casino segment generated €21.5B, a figure two and a half times larger than its land-based equivalent. US iGaming revenue increased 27.6% in 2025 to $10.74B compared with a 2.3% rise for traditional venues.Physical locations continue to offer a combination of licensed access, dedicated environments and direct service that digital channels do not fully replicate. The primary limitation remains the slower pace and reduced interactivity of in-person gaming. Waterhouse VC identifies bridging this operational gap as the central market opportunity.
Earlier industry reports indicated that regulated markets consistently redirect player demand toward channels offering the most accessible and permitted gaming formats.