Global Political Challenges Affect Gaming Stocks

The U.S. election has gotten most of the domestic headlines, but it's a leadership change in China that will most impact gaming stocks going forward. Las Vegas Sands (NYSE: LVS  ) , Wynn Resorts (Nasdaq: WYNN  ) ,  Melco Crown (Nasdaq: MPEL  ) , and even MGM Resorts (NYSE: MGM  ) all count on Macau and by extension China's VIP gamblers for a large portion of their business. But what most people don't know is that much of the VIP business is driven by junkets, which provide a way for wealthy Chinese to get money out of China. If China's new government tries to crack down on the flow of funds out of China through Macau or other corrupt practices that are often tied to Macau, it could affect gaming revenue going forward. 

To learn more about about these challenges and opportunities for gaming's biggest company, check out our brand-new premium report on Las Vegas Sands. We're providing a full year of analyst updates to go with it, so make sure to claim your copy today by clicking here.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2110690, ~/Articles/ArticleHandler.aspx, 4/18/2014 8:45:17 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

TREND TRACKER: Get Rich When the Web Goes Dark

It's time to say "goodbye" to your Internet! One bleeding-edge technology is about to put the World Wide Web to bed. And if you act right away, it could make you wildly rich. Experts are calling it the single largest business opportunity in the history of capitalism… The Economist is calling it "transformative"... but you'll probably just call it "how I made my millions." Big money is already on the move. Don't be too late to the party – find out the 1 stock to own when the Web goes dark.


Advertisement