Despite the stock being volatile, investment in Las Vegas Sands could just be the investment of the year. Rumour has it that Macau, which has long since been a very popular gaming resort off the south east coast of China, will soon boast a brand new casino, operated and owned by the US based company, Las Vegas Sands.
Venetian Macau is expected to open in August at a cost of $2.5 billion. LVS anticipates that the average stay at the casino hotel will be between 3-4 days whereas the average stay at other Macau hotels is 2 days. The Venetian is the first of seven Cotai Strip Las Vegas Sand’s properties planned. At completion of the project there will be an estimated 2,900 table games, 16,000 slot machines, and approximately 20,000 hotel rooms. Another LVS casino, the Palazzo will also open on the Las Vegas Strip latter part of this year, a 5,000 slot casino in Philladelphia is planned for this year as well as the Marina Bay Sands in Singapore.
The new Venetian hotel casino in Macau should reach a targeted occupancy rate of 100% within the first month of operation. Global gambling revenues are on the rise and is expected to exceed $144 billion before 2011. The Asia Pacific gambling market is currently the second largest globally and explains LVS's bold venture into this market.
CEO of LVS Sheldon Adelson holds 70% of the outstanding shares. At the current price LVS stock cannot be considered inexpensive however the investment seems worthwhile against the backdrop of a net revenue increase of 18.6%. Other stocks worth a second look are MGM Mirage and Boyd Gaming Corporation. Interestingly enough, MGM and Pansy Ho Chiu-king will join forces to operate a casino resort in Macau.
