Holy Macau!: Wynn Resorts And Las Vegas Sands Head Eastbound And Down

We all know that whatever happens in Vegas, stays in Vegas--or at least we should hope! But recently it seems that what happens in Vegas is happening a lot more in Macau -- the "Vegas of the East." Most people in the US are shocked to learn that for every $1 spent in Vegas, $7 is spent in Macau! Below, we'll go over a couple of names that could help capture some of that Macau money. But first, a quick primer...

Macau is the only place in China where gambling is legal. Originally a Portuguese colony in the sixteenth century, Macau was "officially" handed back to China in 1999. Because Macau is considered a "Special Administrative Region," the normal laws don't apply. As most of us know, people tend to want what they can't have -- and gambling is certainly no exception. The growth that Macau is seeing is phenomenal (as we can see from the chart below).

2013 was a record setting year for Macau, now known as "Monte Carlo of the Orient." Gaming revenues increased by more than 18% exceeding $45 billion. Goldman Sachs research estimates that Macau's growth has not peaked, as characterized by the chart above. The explosive growth of Macau has resulted in other Asian countries wanting to cash in on their piece of the gaming scene. The Japanese Liberal Democratic party has taken action by submitting a bill to parliament to legalize casinos. Should legislation pass, Japan has the potential to surpass Singapore, making it the would be second largest gaming hub in the world. Japan was selected to host the 2020 Olympic Games, shifting the government's focus to updating infrastructure and visitor accommodations. This shift in focus, coupled with the tremendous upside for revenue, could sway Japanese lawmakers---especially considering the precarious position of

This article was written by

Regal Point Capital is a private investment management firm based in Florida.

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