VICI Finds Private Casino Operators Prefer REIT Financing in 2026 Q2

Private vs. public operators: willingness to use REIT financing and implications for casino M&A/refinancing

Are private operators more willing than public operators to use REIT financing?

Based on VICI’s management commentary, private casino operators appear more receptive to REIT-style capital than public operators in today’s environment—primarily because private owners can focus on long-term returns rather than quarterly earnings optics.

• Management frames a key dynamic: public markets have “undervalue[d] casino operators” over the last few years, which helps explain why public-company decision-making may be less aligned with REIT financing economics. ¹
• VICI then describes what changes when operators go private: private operators become less focused on “what the earnings are going to be in a given quarter” and more focused on the “IRR” on incremental investments. ²
• VICI links this to financing behavior directly: VICI has found that “private operators are more responsive to the use of our capital through our Partner Property Growth Fund,” because, “from an IRR point of view,” the capital is “very, very attractive.” ²

Separately, while not “willingness” in a financing sense, VICI also argues that private ownership structures can be operationally beneficial for casinos—e.g., managers can tolerate disruption from refurbishment/IT initiatives without worrying about short-term quarter impacts. ³ This operational tolerance can indirectly support receptiveness to capital-funded investment programs, which REIT partners often help fund. ³

Conclusion (from the excerpts): VICI does not claim private operators are uniformly “more willing” in a blanket way, but it does state a specific observed pattern: private operators have been more responsive to VICI capital where the value proposition is measured on long-term IRR rather than quarterly earnings sensitivity. ²

How might a shift toward private casino markets affect M&A and refinancing?

The excerpts support several mechanisms by which private-market growth could change (a) transaction behavior (M&A) and (b) capital structure actions (refinancing) in casinos.

1) M&A deal-making may become more investment/IRR-driven once operators are private

VICI’s reasoning is that after going private, operators focus less on quarterly earnings and more on IRR on incremental investments. ² If this IRR discipline extends to acquisition strategies, it can:

• make operators more willing to pursue value-creating acquisitions and property upgrades because the investment case is evaluated on return horizons rather than immediate earnings optics. ²

The excerpt doesn’t provide a quantified M&A volume change, but it directly connects private ownership to a different decision framework that tends to support capital deployment. ²

2) Refinancing could become more proactive for private operators—especially when REIT capital can be positioned on returns

VICI explicitly ties private-operator responsiveness to its investment platform: Partner Property Growth Fund capital is “very, very attractive” on an IRR basis. ² That implies a refinancing/recapitalization environment where:

• operators may find REIT-provided capital (or REIT-structured solutions) easier to underwrite versus public-market constraints. ²

While the excerpt does not specify a refinancing rate/volume, it does argue the economic filter changes—IRR versus quarter-by-quarter earnings—which is exactly the kind of shift that can make refinancing more feasible and timely. ²

3) Public-to-private transition can reduce stigma around “distraction” from operating changes—supporting more property-level capital actions

VICI’s operations-side argument is that in a private setting, operators “do not really worry about” the 30–120 day disruptions from refurbishment/IT, whereas public settings may be more constrained. ³ In practice, that can affect refinancing and M&A indirectly because:

• property-level capital events (capex, upgrades tied to lease renewals, or deal-related transformations) become easier to schedule and justify when management is insulated from quarterly pressure. ³

4) Transaction timing may be influenced by complex ownership/M&A structures, but rent collection continues during transitions

VICI discusses M&A complexity in the Caesars context, noting that Caesars is undergoing a “very significant M&A transaction” with “many moving pieces and many stakeholders, including regulatory,” and giving an example timeline of ~12 months (as referenced by management). ⁴ They also say they collect every dollar of rent in the meantime and do not frame the process as eliminating rent obligations during the transition. ⁵

Implication: even as ownership structures move toward private-market complexity, the financing/lease framework (REIT rent collection) can stabilize cash flows during ownership transitions, potentially making REIT financing more attractive during uncertain restructuring periods. ⁵

Bottom line

• More willingness/greater responsiveness: VICI’s experience indicates private casino operators are more responsive to REIT capital programs because decision-making shifts toward long-term IRR on investments rather than quarterly earnings sensitivity—a contrast management links to how public markets have “undervalue[d] casino operators.” ¹²
• M&A/refinancing effects: As operators increasingly go private, VICI’s excerpts support a plausible shift in capital allocation: greater openness to property-level transactions and capital deployment (including transactions that REITs fund) because management can tolerate disruption and evaluate returns over longer horizons. ³² At the same time, M&A execution can remain lengthy and regulatory-heavy (e.g., Caesars referenced ~12-month completion timeframe), but the REIT lease structure still supports rent collection through the transition. ⁴⁵

All of the above is grounded in VICI’s management commentary in the provided transcript excerpts; the excerpts do not include quantitative measures (e.g., changes in refinancing spreads, deal counts, or leverage ratios) to confirm broader industry-wide trends beyond VICI’s observations. ¹²