As Macau Casino Revenues Fall, Investors Buy

Macau's casino revenue has taken a hit -- which is why investors are pouncing.

Mark Reeth
Mark Reeth and Michael Finarelli
Jul 13, 2014 at 3:00PM
Consumer Goods

Revenues at Macau's casinos fell 3.7% year over year in June, and investors are pouncing on gaming stocks following some sharp drops in share prices this year.

With revenues falling to 27.2 billion Macau patacas ($3.4 billion U.S.), most likely due to a huge decline in VIP revenue, the slowdown in Macau's gaming growth has been a boon for investors looking to jump in. Wynn Resorts (NASDAQ:WYNN), Las Vegas Sands (NYSE:LVS), Melco Crown Entertainment (NASDAQ:MLCO), and MGM Resorts International (NYSE:MGM) -- the parent companies of Macau's casinos -- all saw gains recently due to bad news from the "Asian Las Vegas."

In this segment of The Motley Fool's Where the Money Is, consumer-goods editor Mark Reeth and analyst Michael Finarelli discuss whether it's a good time to gamble on Macau's casinos.