Gaming analyst at Bear Stearns, Joe Greff says: “I think broadly speaking, growth in the US is going slow. We see more growth in Asia.”
Wanting to expand more and to grow more in the gaming industry casino companies are increasingly looking overseas to drive growth. A gaming analyst from Goldman Sachs Mr. Steve Kent said, “International markets have really opened up, in particular in Macau. Over time, the majority of revenue for Las Vegas Sands will come from Asia.”
US gaming companies are not suffering from loss of revenue. Since the arrest of BetOnSports chief executive, online gambling in the US gave a whole new view about gambling. And although gambling is still illegal in the US gaming companies from the states are still growing domestically and abroad.
However, even though the growth to these states is visible Mr. Steve Kent said “Casinos need either new markets or new buildings to stay in high growth. Same-stores sales will only get you so far. The biggest driver of revenue is new capacity being added.”
“It’s a very big deal,” says Mr. Curtis. “Macau is the only legalized gambling venue for China. The Chinese government is now allowing travel to Macau and Hong Kong for mainland Chinese without a visa.”
Tom Graves, gaming analyst with Standard and Poor’s said, “The long-term performance (of casino stocks) has been very strong.”
Harry Curtis says, “In states that already have gambling, those taxes from gambling became one of the top three to five sources of revenue.”
“Traditional convention cities like New York and Chicago are losing share to Las Vegas. It’s less expensive, it’s easier to get to, and many people think its more fun,” said Harry Curtis.