The most important factor to consider with gaming stocks is location. A great operator with casinos in a terrible location can lose money while a bad operator in a great market can thrive.
That's why investors should look straight past U.S. regional gaming, The Caribbean, and even Las Vegas to gaming companies in Macau -- and specifically, Cotai. Macau as a whole grew gaming revenue 18.6% last year, but Cotai is the gaming district consumers are trending toward. It has the newest resorts, a critical mass of casinos, and all six operators are building there right now.
Right now, Las Vegas Sands (NYSE:LVS) has the most exposure to Cotai, with three resorts and another in the works, and Melco Crown (NASDAQ:MPEL) gets almost all of its revenue there today. But Wynn Resorts (NASDAQ:WYNN) and MGM Resorts (NYSE:MGM) will make their Cotai debut in the next few years with resorts that will change the game for these two companies.
In the video below, gaming specialist Travis Hoium covers why Cotai is the only place to invest in gaming today.
Will this stock be your next ten-bagger?
Cotai is hot operationally but it's not the only opportunity on the market. Give me five minutes and I'll show how you could own the best stock for 2014. Every year, The Motley Fool's chief investment officer hand-picks one stock with amazing potential. But it's not just any run-of-the-mill company. It's a stock perfectly positioned to cash in on the upcoming year's most lucrative trends. Last year, his pick skyrocketed 134%. And previous top picks have gained upwards of 908%, 1,252% and 1,303%! Believe me, you don't want to miss what could be his biggest winner yet! Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.
Travis Hoium manages an account that owns shares of Wynn Resorts, Limited. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.