Casino operators face lofty expectations this earnings season

The Bedford Report examines the outlook for companies in the Resorts and Casinos Industry and provides stock analysis on MGM Resorts International  and Melco Crown Entertainment. Access to the full company reports can be found at: www.bedfordreport.com/MGM, www.bedfordreport.com/MPEL.

The American Gaming Association says that it expects the island of Macau to post 40 % year-on-year growth in gross gaming revenues this year. AGA reports that Macau boasts the highest concentration of casinos anywhere in the world.

Gross gaming and gambling revenues in Macau totalled us$ 15.515 billion in the first six months of 2011, representing a year-on-year rise of 44.6 %, according to the Macau Gaming Inspection and Coordination Bureau.

The Bedford Report releases investment research on the Resorts and Casinos Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns.

MGM Resorts is not reporting second quarter earnings until early next month. Although the company has recently expanded internationally, MGM remains the largest casino operator on the Las Vegas Strip. Las Vegas Strip casino gambling rose the most in 15 months in May, driven by a surge in baccarat and a championship fight with boxer Manny Pacquiao.

Melco Crown Entertainment recently announced that it will pay us$ 360 million for a controlling stake in a new gaming resort in Macau - the company's second resort in the Asian gaming hub. Melco Crown will spend us$ 1.7 billion developing the 2,000-room resort, with construction starting as early as next year to meet a 2015 completion date, group chief executive Lawrence Ho said.