Melco Crown and MGM Resorts eye expansion

The Bedford Report examines the outlook for companies in the Resorts and Casinos Industry and provides equity research on Melco Crown Entertainment.

Macau's Gaming Inspection and Coordination Bureau reported earlier this month that gambling revenue on the small island jumped 39 percent to us$ 2.6 billion in September, reflecting continued growth in the world's largest gambling market despite plunging casino stocks. September's revenue figure was expected to fall short of August's record us$ 3.1 billion due to seasonal factors.

Asia's strong growth in the gaming industry stands in contrast to the Las Vegas Strip, which is now suffering the effects of the global downturn. Casino stocks have had a fairly difficult two months on fears that a potential slowdown in the Chinese economy might affect companies' operations in Macau.

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.

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.

MGM Resorts intends to expand further in Asia and the first hotel is expected to come on stream this year in Sanya on Hainan Island, China. MGM also expects to have its properties in several other cities in China such as Beijing, Chengdu, Tianjin and Nanjing.