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What Happens in Vegas Now Happens in Macau: How to Take Advantage of the World's No. 1 Gambling Market

|Includes:LVS, MGM Resorts International (MGM), WYNN

Las Vegas has historically been known for it's reputation of "What Happens in Vegas, Stays in Vegas" well now the same happens in Macau. From an investors standpoint many ask "How to take advantage of Macau’s emergence as world’s No. 1 gambling market."

Macau overtook Las Vegas as the world’s No. 1 gambling market over three years ago.  Once a seedy sideshow to nearby Hong Kong, Macau now draws millions of Mainland China visitors, who can’t legally bet at home.  There are 3 billion people in a travel radius around Macau!

After Macau gambling monopoly ended in 2002 after the China regained control in 1999, the former Portuguese colony quickly passed Las Vegas as the world’s largest gambling market. Macau casino revenue climbed 10% in 2009 and has continued at a record pace in 2010.  U.S. investors such as the Wynn and Sands groups came to the region and built Las Vegas-style casinos.  Sands’ Macau Venetian – even larger than its Las Vegas twin – opened in 2007 as the new flagship of Sands Asia.  The massive complex includes the world’s largest casino and 3,000 luxury suites.  Big spenders from China have flocked to the resort, even during the global economic downturn that hurt tourism in other parts of the world.  China’s economy grew 8.7% in 2009.

Las Vegas operators, Las Vegas Sands, the MGM Grand, and Wynn Resorts are leveraging their casinos in Macau to boost growth.  Plus, rumors the government may limit the number of new casinos will only increase the value and attractiveness of these resorts. Analysts forecast huge earnings increases in 2012 continuing to accelerate growth.  Sands earned back its $260 million investment in Macau in less than a year.

I think both Las Vegas Sands (NYSE:LVS) MGM Grand (NYSE:MGM), and Wynn Resorts (NASDAQ:WYNN) are well poised to begin new, major advances.



Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Stocks: MGM, LVS, WYNN