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Can a Casino Really Be a Good Investment?

Martin Castilla            No comments            Jul, 25

A Bit of History

The casino industry once revolved around the famous Strip in Las Vegas and was seen by investors as an invincible field that was immune to economic problems, such as recessions. This poor thinking was part of the reason behind the suddenly low returns on investment, bankruptcy filings and oversaturation a while back.

 

The industry’s proponents have now at least become grounded by being attuned to the changing trends that can affect the casino or gambling industry and to its inherent vulnerabilities. This awareness has led to the diversification of casino operations and, consequently, investments. Companies and investors now place emphasis on online casinos and regional and overseas operations. Online casinos, in particular, were quick to gain popularity, market share and profits. You can find out more about them at www.onlinescam.net/casino/tips/.

 

Do I Invest or Not?

Some time has lapsed and a lot of things have happened since these developments began. If you are now wondering how the casino industry is doing overall, it is doing very well. In other words, the answer to the question in the title is a solid YES. Although casinos are by no means perfect and crisis-proof, they still make substantial profit year after year. They are definitely worth looking into.

 

Some Names to be Familiar With

You are already familiar with the biggest names in the casino industry. More or less, these are still the same names that are showing the most promising returns now in the stock market. Firstly, you have Wynn Resorts, who owns an impressive list of upscale resorts and casinos worldwide. They have a market cap of over $14 billion now and they are up 54% year to date.

 

Another casino giant is MGM Resorts International, who owns the famous MGM Grand, the Bellagio, Circus Circus, Mandalay Bay and other luxury destinations. Their market cap is higher than Wynn’s at over $19 billion today, but show a smaller growth with a year to date change of only 13.74%. Nevertheless, they are still performing well as these figures reflect a growth of over 130% versus the last five years.

 

There is also the firmly established Las Vegas Sands, the company behind The Palazzo and the Venetian. At present, their market cap is an astounding $50.12 billion, and their stock is up by 15.93% since the beginning of this year.

 

Other names worth investing in are Caesars and Golden Entertainment, who own casinos in Vegas and in Nevada and Maryland, respectively. Last but definitely not the least, take a close look at Melco Crown Philippines Resorts Corporation, the best performing casino stock today.

 

They own casinos and resorts throughout Asia and used to be supported by James Packer of Crown Resorts. Toward the end of last year, Melco had one of the cheapest casino stocks around, mainly because investors did not think they would manage the loss of Crown Resorts well. However, here they are now with a year to date return of 125.93%. Most of this unprecedented growth is attributed to the influx of Chinese tourists in the Philippines due to the recent corruption crackdown and implementation of stringent regulations in Macau.

 

A Final Word

All in all, the casino industry is definitely worth investing in provided that you keep abreast of the developments in it. Just like other investments, casinos have their ups and downs too.

 

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