These 6 Companies Have Created A Gambling Hub Three Times Bigger Than Vegas

Melco

The Macau gaming industry is booming and according to Citi estimated revenue for casinos in the region could total almost $30 billion this year.

In comparison Las Vegas gaming revenue was $10.2 billion in 2009 and is not expected to reach $12.5 billion until 2014.

Unlike the Las Vegas casinos which are only now recovering from the recession and have to deal with new American competitors, the Macau casinos did not feel the heat of an economic downturn and have only increased their wealthy customer base.

Macau-related stocks outperformed the Hang Seng Index by 118% in 2010, driven by 58% gaming revenue growth.

But it’s not just about big revenues. It’s also about luxurious, massive casinos that are easy on the eyes.

[slideshow]
[slide
permalink=”melco-crown-entertainment-more-traffic-will-keep-earnings-up-1″
title=”MELCO CROWN ENTERTAINMENT: More traffic will keep earnings up”
content=”CEO: Lawrence Ho

Ticker: MPEL

Macau properties: Crown Towers, Hard Rock Hotel, Grand Hyatt Macau, Altria Macau

Citi expects Melco to generate earnings before interest, taxes, depreciation and amortization of nearly $129 million which is 7% above the current consensus of $120 million.

The People’s Bank of China rate hikes and a liquidity crunch from the mainland could hurt Melco’s VIP business, but near-term growth is expected to be sustainable.

Expansion Plans: CEO Lawrence Ho said they were going to focus on strengthening the City of Dreams brand and would like to invest more in Macau.

Source: Citi
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[slide
permalink=”melco-crown-entertainment-melco-towers-in-macau-2″
title=”MELCO CROWN ENTERTAINMENT: Melco Towers in Macau”
content=”Melco Crown has reached a deal with the Macau government to alter the design for the towers.

Source: Citi
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[slide
permalink=”melco-crown-entertainment-grand-hyatt-macau-3″
title=”MELCO CROWN ENTERTAINMENT: Grand Hyatt Macau”
content=””
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[slide
permalink=”melco-crown-entertainment-melco-altria-4″
title=”MELCO CROWN ENTERTAINMENT: Melco Altria”
content=”Citi values Altria at 10 times the 2011 Enterprise Value/Earnings before Interest Taxes, Depreciation, Amortization. It is a 38-story complex with 216 rooms.

Source: Citi, Melco Crown


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[slide
permalink=”mgm-resorts-international-looking-to-expand-5″
title=”MGM RESORTS INTERNATIONAL: Looking to expand”
content=”CEO: Jim Murren

Ticker: MGM

Macau properties: MGM Grand Macau

The company owns the MGM Grand Macau in partnership with Pansy Ho, casino billionaire Stanley Ho’s daughter.

The Macau operation is now using 427 gaming tables instead of around 380 which it did for most of 2010 because it sees so much potential in the area.

MGM Resorts has had a boost with the recent recovery in Las Vegas and the launch of its new customer loyalty program, M life.”
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permalink=”mgm-resorts-international-mgm-grand-macau-6″
title=”MGM RESORTS INTERNATIONAL: MGM Grand Macau”
content=”



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[slide
permalink=”las-vegas-sands-with-two-more-sites-opening-by-2012-it-is-poised-for-massive-revenue-growth-7″
title=”LAS VEGAS SANDS: With two more sites opening by 2012 it is poised for massive revenue growth”
content=”CEO: Sheldon Adelson

Ticker: LVS

Macau Properties: Venetian Macau, Plaza Casino, Four Seasons Hotel Macau, Sands Macau

Revenue generated by the three casinos in Macau totaled $952.8 million in the fourth quarter. By comparison, its two Las Vegas properties generated $263.7 million.

Expansion Plans: It will open gaming Sites 5 & 6 by 2012 which Citi expects will boost it to becoming the big market-share winner, rising to an estimated 22% of the market from 19% in 2011.

Source: Citi
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[slide
permalink=”las-vegas-sands-sands-macau-8″
title=”LAS VEGAS SANDS: Sands Macau”
content=””
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[slide
permalink=”las-vegas-sands-venetian-macau-hotel-and-plaza-casino-9″
title=”LAS VEGAS SANDS: Venetian Macau Hotel and Plaza Casino”
content=”Opened in 2008, it is the largest single block style hotel in Asia and one of the largest buildings in the world.

Source: travelchinaguide



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[slide
permalink=”las-vegas-sands-four-seasons-hotel-macau-10″
title=”LAS VEGAS SANDS: Four Seasons Hotel Macau”
content=”The hotel has 360 rooms.

Source: Four Seasons
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[slide
permalink=”galaxy-entertainment-increasing-market-share-with-opening-of-galaxy-macau-this-year-11″
title=”GALAXY ENTERTAINMENT: Increasing market share with opening of Galaxy Macau this year”
content=”CEO: Michael Mecca

Ticker: MGM

Macau Properties: Starworld Hotel and Casino, Waldo Casino & Hotel, President Hotel & Casino, Rio Casino, Grand Waldo Casino, opening the Galaxy Macau in March

It is expected to grow an additional 15% to nearly $34 billion in early 2012.

Expansion Plans: The Galaxy Macau which is opening with 2,200 rooms in March, is expected to become the largest market share winner this year and will be as competitive as major casinos such as Venetian Macao and Wynn Macau.

This building will be ready before the two new Sands sites.

It will be helped by the new Zuhai North-Gongbei Gate extension of the MRT line.

Source: Citi
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[slide
permalink=”galaxy-entertainment-galaxy-macau-12″
title=”GALAXY ENTERTAINMENT: Galaxy Macau”
content=”It will be completed by March of this year.”
image=”http://static.businessinsider.com/image/4d3a0c7d4bd7c86377230000/image.jpg”
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[slide
permalink=”galaxy-entertainment-grand-waldo-hotel-and-casino-13″
title=”GALAXY ENTERTAINMENT: Grand Waldo Hotel and Casino”
content=”It has 316 gaming machines and 115 table and poker games.

Source: Galaxy Entertainment
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[slide
permalink=”galaxy-entertainment-galaxy-starworld-hotel-and-casino-14″
title=”GALAXY ENTERTAINMENT: Galaxy Starworld Hotel & Casino”
content=”It has 240 gaming tables and a total of 500 slots.

Source: Galaxy Entertainment
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[slide
permalink=”galaxy-entertainment-president-casino-and-hotel-15″
title=”GALAXY ENTERTAINMENT: President Casino & Hotel”
content=”The President Hotel Macau added its own casino a few years ago. It has 60 gaming tables.

Source: Galaxy Entertainmet

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[slide
permalink=”galaxy-entertainment-rio-casino-and-hotel-16″
title=”GALAXY ENTERTAINMENT: Rio Casino & Hotel”
content=”It is within walking distance of the Hong Kong-Macau Ferry Terminal and 15-minutes from Macau International Airport by car. It has 449 rooms.

Source: Galaxy Entertainment

Photo Source: AP
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[slide
permalink=”sjm-holdings-surge-in-share-price-in-2010-17″
title=”SJM HOLDINGS: Surge in share price in 2010″
content=”CEO: Dr. Ambrose So

Ticker: HKG

Macau Properties: Grand Lisboa, Casino Lisboa, Casino Oceanus at Jai Alai, Casino Ponte 16, Casino Babylon, Casino Casa Real, Casino Lan Kwai Fong Macau, Casino L’Arc Macau, Casino Macau Jockey Club, Casino Golden Dragon, Casino Kam Pek Paradise

The company experienced a 182% increase in its share price on the Hong Kong Stock Exchange in 2010.

SJM also recaptured lost market share throughout the past year, averaging 31% of the far larger market, up from 28% in 2009.

Expansion Plans: It is having some difficulty with government permits but it plans to add two more sites in Cotai.

Source: Citi
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[slide
permalink=”sjm-holdings-grand-lisboa-18″
title=”SJM HOLDINGS: Grand Lisboa”
content=”



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[slide
permalink=”sjm-holdings-casino-babylon-19″
title=”SJM HOLDINGS: Casino Babylon”
content=”It has 120 gaming machines and 45 gaming tables.

Source: SJMHoldings
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[slide
permalink=”sjm-holdings-sofitel-macau-at-ponte-16-20″
title=”SJM HOLDINGS: Sofitel Macau at Ponte 16″
content=”The 20-story hotel has over 400 rooms.

Source: SJMHoldings
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[slide
permalink=”sjm-holdings-casino-lan-kwai-fong-macau-21″
title=”SJM HOLDINGS: Casino Lan Kwai Fong Macau”
content=”It has around 200 rooms and is within walking distance of many of the other casinos.

Source: SJMHoldings
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[slide
permalink=”sjm-holdings-casino-larc-macau-22″
title=”SJM HOLDINGS: Casino L’Arc Macau”
content=”It opened in 2010.”
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[slide
permalink=”sjm-holdings-casino-macau-jockey-club-23″
title=”SJM HOLDINGS: Casino Macau Jockey Club”
content=””
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[slide
permalink=”wynn-resorts-wynn-macau-has-double-the-revenue-of-its-las-vegas-parent-company-24″
title=”WYNN RESORTS: Wynn Macau has double the revenue of its Las Vegas parent company”
content=”CEO: Steve Wynn

Ticker: WYNN

Macau Properties: Wynn Macau

The company’s high-quality management and its financial strength – its net debt is less than $13 million – sets it apart from its competitors. Wynn Resorts has been able to maintain a mid- to high-teen market share in Macau. It is expected to hold onto a 15% share despite facing more competition.

Expansion Plans: Wynn Resorts will be building a new property in the Macau, Wynn Kotai, which is expected to be completed by 2014-2015.

Wynn Resorts could reach a market cap of $345 million this year.

Source: Citi
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[slide
permalink=”wynn-resorts-wynn-macau-25″
title=”WYNN RESORTS: Wynn Macau”
content=””
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title=”Worried about runaway Chinese inflation?”
content=”Click here to see SocGen’s plays to beat the spike >
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