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I agree that it's a risk--I bought in to Landry's when it slid with news of the acquisition.

I do see a couple of positive items (spin?) in this action:
--it is an extension of the "entertainment" business (the Aquariums) and their existing hotel mgmt.
--I do see possible synergy with some sort of customer loyalty program between the casino and the restaurants. The casino could serve as the reward for frequent restaurant visits, and the restaurants can let you use casino comps quickly, if you visit infreqeuently.

So Landry's may be a way into casinos, at P/E's that are lower than other options, which seem to be pretty hot right now with all the M&A activity going on. The CEO has experience through family ties, and as casinos go the Nugget is probably as close to "dipping your toe in the water" as you can get without building a brand--it's relatively small but still well-known.

As far as the risks go, there is at least some management experience with hotel management, and obviously restaurants. As for casinos, I am happy that they included notes on the Nugget's loss to the one high roller ($40M, I believe) and their comments that either you serve a lot of them or not. (The impression I got from their tone is that they won't, at least for now) I did see a televised poker tournament at the Nugget, although not WPT or WSOP, but these seem to be relatively cheap advertising for the hosting casinos.
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