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:MLCO) 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.