We all know about Las Vegas, the Sin City, the entertainment and gambling destination of the world, but did you know about Macau, its a small peninsula of the coast of China near Hong Kong, its the only place in China that offers legalized gambling. Moreover, its the only destination within a 2500 mile radius to offer gambling, half of the worlds population lives in that area, aproximately 3 Billion people compare that to Las Vegas which in-turn encompasses not more than 500 million people within the same area. As of yet most countries in that region do not offer gambling due to cultural and religous reasons.
In the second quarter of this year Macau passed Las Vegas to become the largest gaming destination in the world. There are only six companies that posses license to operate in China. The conventional wisdom is that a casino company usually makes 20% profit of whatever it takes in.
Its your provogative to invest in other companies, but Casinos are hot right now especially in Macau.... ouch!!! tooooo HOT!!! :)))... Anyways, this was just something to think about... your thoughts are always appreciated.
Viva Las Macau!!!!!!
CAUTION: The share prices of most companies that have operations in Macau are at their 52 Week Highs, but there are still some good opportunities out there.
3 comments:
hmm...i dont know abt investing in casinos...but i have been to a casino in lake charles twice...n contrary to conventional belief (atleast mine), there are a lot of chinese playing there...somehow its hard for me to imagine chinese gambling! i think i have heard abt Macau from a chinese colleague
btw how does it affect the spending pattern of people when economy goes down, do they become risk averse or more risk takers?
i meant the gambling pattern...i guess it shud go hand in hand with the spending pattern..
Very well said, I was in Hong Kong early this year and was very tempted to take ferry to Macau(which I think is like Specially Restricted zone similar to Hong Kong), but finally couldn't make it.
I saw a report on CNBC almost like a year back about this huge upcming industry and Casinos moving from Vegas started their multi-billion dollar investments in Macau, and at that time invested in Wynn Hotels & Resorts last year.
So, now the saying has it "What Happens in Vegas, Doesn't Stay in Vegas anymore, it's also found in Macau"....
Not sure how would gambling be impacted by recession. I would guess that with recession, we should expect a slow down in Gambling industry too.....
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