In the past two years, we’ve seen a number of European casinos close down in response to Macau’s increasing demand for international gambling activity. Some have closed down completely, others have decided to downsize to more manageable sizes and some are staying open under new ownership. But why are they all losing out on Macau? Here’s a look at a few of the top casino games that have simply gone international.
In many ways, the collapse of the top casino games such as Macao, Singapore and Macao itself was predictable. The global financial crisis has caused a number of international banking and financial sector players to pull back on their overseas investments and spend less time and money on their own countries of origin. This means that they’re not investing as heavily in their home markets. And as a result, there’s a growing population of online casino sites gambling across the world, particularly in Macau.
The weakness of this situation is that it’s not just Macau that’s been affected by the current recession. Even though Singapore is suffering as well, there are still a number of Macau casinos and hotels which have been forced to close their doors. The recent crunch in the Chinese economy also has had an impact on Macau, reducing the amount of people who can realistically access the casino stocks. All of these factors have combined to create a much tighter grip over the top casino stocks in Macau than ever before.
If you’re looking to invest in Macau, one of the safest options available to you today is to take advantage of the current five-year Wynn resort’s balance sheet. You can find out the current value of the various Macau properties listed on the resort balance sheet by clicking onto the appropriate links. While you can expect a dip in value as the effect of the Chinese economy is felt worldwide, you can also see that the Macau property market should start to pick up in the next few months. If you want to play it safe and make sure that you’re investing in a good piece of real estate, then it’s certainly worth researching the current value of these particular properties.
Another area of the top casino stock in Macau that looks highly vulnerable to downturns in the global economy is the Las Vegas Sands Corp. This casino and hotel company saw its market capitalization fall by about forty percent last year. The vast majority of this loss was due to the Chinese property market. Although the overall property market in Macau is doing well, the value of the Macau Sands Corp. properties has dropped by a huge twenty percent over the past year. There are many analysts who are speculating whether the recent downturn in China has directly affected the performance of this top casino stock.
However, there are also other potential negative indicators for investors that should be taken into consideration. One of them is the highly profitable but troubled Venetian Macao resorts. This popular Portuguese resort on the islands of Macau is now dealing with financial problems, which has resulted in many of its resorts closing down. There are also reports that the economic recession in Macau has led to the rapid decline of the number of tourists visiting the city.
In fact, analysts believe that the slowdown in tourism may have directly affected the performance of the top casino stocks. Investors who are looking for Macau casinos that have high liquidity should be searching for companies that have recently closed their casinos. On the contrary, those looking for Macau resorts that are having low liquidity should look for those that are still operating but are currently undergoing significant renovations. It is important to note that although the slowing down of tourist traffic can negatively affect the profitability of the Macau resorts, the long-term prospects for the casino industry in Macau are positive. However, investors need to understand that despite the current downturn, there are still strong opportunities in the casino industry. For instance, the recent auction of the Las Vegas Sands Corp.’s Treasure Island development attracted a record number of interested buyers.
An important question that investors need to consider before purchasing shares of any casino or gambling business includes whether the business will experience rapid growth or contraction. The rapid expansion strategy of the 1990s saw countless new casinos spring up across the world, with the east coast of the US enjoying the lion’s share of the craze. However, the emergence of a number of new online gambling hubs around the world has resulted in the slowing down of online gambling in the west. If you are thinking of investing in shares of any casino or gambling company, the timing of the market’s turnaround must always be considered before purchase.