What investors need to know about the Macau casino sector
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 01 2025
0mins
Should l Buy MGM?
Source: SeekingAlpha
Macau Casino Revenue Decline: Macau's casino sector experienced a 5.6% year-over-year decline in gross gaming revenue (GGR) for January, totaling 18.25 billion patacas ($2.3 billion), marking the second consecutive month of decreasing GGR and falling short of expectations.
Economic Diversification Efforts: The Macau government is focusing on increasing non-gaming revenue to reduce reliance on gambling, aiming for non-gaming industries to represent 60% of GDP by 2028, while casinos are required to invest in non-gaming attractions as part of their concession agreements.
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Analyst Views on MGM
Wall Street analysts forecast MGM stock price to rise
14 Analyst Rating
5 Buy
7 Hold
2 Sell
Hold
Current: 37.110
Low
29.00
Averages
40.31
High
56.00
Current: 37.110
Low
29.00
Averages
40.31
High
56.00
About MGM
MGM Resorts International is a global gaming and entertainment company with national and international locations featuring hotels and casinos, meetings and conference spaces, live and theatrical entertainment experiences, and a range of restaurant, nightlife and retail offerings. The Company’s segments include Las Vegas Strip Resorts, Regional Operations, MGM China, and MGM Digital. The Las Vegas Strip Resorts segment consists of Aria, Bellagio, The Cosmopolitan of Las Vegas, MGM Grand Las Vegas, Mandalay Bay, Luxor, New York-New York, Excalibur, and Park MGM. The Regional Operations segment consists of MGM Grand Detroit in Detroit, Michigan; Beau Rivage in Biloxi, Mississippi; Gold Strike Tunica in Tunica; Borgata in Atlantic City, New Jersey; MGM National Harbor in Prince George’s County, Maryland; MGM Springfield in Springfield, Massachusetts; Empire City in Yonkers, New York, and others. MGM Digital is its online gaming portfolio which is primarily comprised of LeoVegas.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Family-Friendly Policy: While the package is designed for two guests, it accommodates up to four, with children under 10 receiving free meals, further appealing to family demographics and enhancing market competitiveness.
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See More
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- Dynamic Pricing Strategy: The package is available for immediate booking for stays starting April 6, utilizing dynamic pricing with no blackout dates, and is sold directly through MGM channels, avoiding intermediary fees from online travel agencies.
- Addressing Tourism Decline: In response to a 3.1 million drop in Las Vegas visitors in 2025, MGM aims to attract more guests and improve midweek business performance through this package, addressing affordability concerns among tourists.
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- Insufficient Self-Regulation: Despite Kalshi and Polymarket announcing new rules to restrict relevant individuals from betting on their platforms, Schiff argues that these measures are inadequate, emphasizing the need for stricter oversight to prevent insider trading and market manipulation.
- Market Risk Warning: Schiff cautioned that current regulations fail to effectively address the potential risks of insider trading, particularly with the application of blockchain technology, which could lead to unregulated gambling activities that undermine market fairness.
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- Attractive Valuation: Link emphasized that Truist is currently trading at 0.9 times its book value, noting that historically, buying banks below book value is a sound strategy, and she anticipates increased buybacks and dividends in the near future.
- Las Vegas Sands: Despite legislative risks, Link maintains her position in Las Vegas Sands, asserting that the company is performing well in Macau and Singapore, and is poised to benefit from the rising power demand for AI data centers.
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