Macau's Growth Knows No Bounds

Macau had another great year in 2013, with gaming revenue growth up 18.6% to $45 billion. But can 2014 generate the same results? Erin Miller sat down with contributor Travis Hoium to discuss this in the video below. 

On the side of growth is fast-improving infrastructure that will transport gamblers from Mainland China as well as around Macau itself. Then there's the long-term driver of new resorts from Las Vegas Sands (NYSE: LVS  ) , Wynn Resorts (NASDAQ: WYNN  ) , Melco Crown (NASDAQ: MPEL  ) , and MGM Resorts (NYSE: MGM  ) on Cotai, which makes the area an even bigger attraction for the mass market. 

Sheer size is the downside. Eventually, Macau's growth will have to be more in line with that of China or other Asian countries. Find out more about Macau's future below. 

Balance out your gambling risk
Gaming companies have been on a wild ride in recent years, so if you're looking to balance your portfolio with some less risky picks, then the special free report "3 Stocks That Will Help You Retire Rich" is for you. The Motley Fool shares investment ideas and strategies that could help you build wealth for years to come. Click here to grab your free copy today.


Read/Post Comments (1) | Recommend This Article (2)

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.

  • Report this Comment On January 13, 2014, at 1:25 PM, spokanimal wrote:

    I was struck by this line above:

    "Sheer size is the downside. Eventually, Macau's growth will have to be more in line with that of China or other Asian countries.".

    While that is certainly true, I'm surprised, as Mr. Hoium slowly gathers knowledge about the gaming industry, that he would present such a prospect at all, given the trajectory of "maturation" of gaming in the region surrounding Macau.

    Gaming proliferation is something that is happening "slowly" in the far east. Only a very small percentage of the burgeoning Chinese middle class has ever even BEEN to macau, despite the trends for wealth and infrastructure. Japan and Taiwan don't even HAVE casino gaming yet.

    Even after the "proliferation" of gambling began in the U.S. with the first tribal venues in the 20th century, Las Vegas continued it's outsized, heady growth for decades before succumbing to the stagnant gaming revenues and altered emphasis toward non-gaming attractions.

    Given that gaming in the far east is at least 15 to 25 years away from leveling off to a growth rate that approximates the growth of the economies in general in that region...

    ... I'm amazed that Mr. Hoium would bring it up as anything that anyone would want to fret about.

    As this contributor continues to gain experience in the gaming industry, hopefully these kinds of comments will fall by the wayside.

    Spokanimal

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2789532, ~/Articles/ArticleHandler.aspx, 11/28/2014 3:35:17 AM

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...


Advertisement