Despite Vladimir Putin's historic visit to Japan this week, a bigger story for the local economy may be the passing of the casino gambling bill by the National Diet.
Analysts say Japan could become the world's second largest gambling market after Macau based on the current massive level of Pachinko interest and tourism estimates. Morgan Stanley puts a number to the development, saying gaming revenue could top $20B by 2025. For comparison, Macau generated $29B last year and the Las Vegas Strip churned up $6.3B.
Today's upgrade of Las Vegas Sands (NYSE:LVS) and MGM Resorts (NYSE:MGM) by MS is based in part off of Japan potential, while Genting Singapore (OTCPK:GIGNY, OTCPK:GIGNF), Japan Cash Machine (OTC:JPNCF), Sega Sammy (OTCPK:SGAMY) and Wynn Resorts (NASDAQ:WYNN) have all been mentioned on the Street as Japan casino plays.
There's also a potential positive spillover to the Japanese economy to consider.
Previously: Japan casino plays soar (Dec. 5)
Previously: Japan legalizes casino gambling (Dec. 14)
Casino ETF: BJK.
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