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Las Vegas Sands Corp. (LVS), Zynga Inc (ZNGA): Are These Companies Worth Gambling Upon?

Gambling companies are starting to make a comeback. Las Vegas saw increases in gambling revenue this quarter and analysts expect international revenue to grow in 2013. So, on which gambling company should you place your bet?

Turning around

Las Vegas Sands Corp. (NYSE:LVS) has had a rough patch for a while and is trying to recover from its many losses in the past. The company has seen a decline in earnings per share for the last three quarters. Moreover, analysts expect a tepid first-quarter report from the company.

Las Vegas Sands Corp. (NYSE:LVS)

However, there is some good news in analysts’ expectations. The general consensus is that the company will see a 27% increase in earnings for the full year. A lot of this has to do with a region known as Macau.

SANDS CHINA LTD. (HKG:1928) owns and operates casinos in Macau. Macau, like Hong Kong, is a special administrative region of China. Las Vegas Sands Corp. (NYSE:LVS) owns 70% of SANDS CHINA LTD. (HKG:1928) and receives much of its revenue from this operation.

Sands China has had a decline in earnings as well, but recently began to grow again – largely due to the booming market in Macau. The company is expected to grow 58% this year. It is launching a new casino called The Parisian Macao, which will open in 2015. This $2.7 billion project should help the company carry on its growth.

The majority of Las Vegas Sands Corp. (NYSE:LVS)’ revenue comes from SANDS CHINA LTD. (HKG:1928). Only 14% of its revenue is from its operation in Las Vegas. The boost in revenue in Macau is a great sign for Las Vegas Sands. Gambling is up 2.3% in Las Vegas Sands Corp. (NYSE:LVS) so far this year, which is another great sign. This is the highest growth in five years.

Another rebounding casino

Wynn Resorts, Limited (NASDAQ:WYNN) operates two hotel-casinos in Las Vegas – Wynn Las Vegas and Encore at Wynn Las Vegas. Like Las Vegas Sands, it has operations in Macau. However, it operates just one casino there – the Wynn Macau resort.

Wynn Resorts, Limited (NASDAQ:WYNN) receives the majority of its revenue from its solitary Macau resort. In 2012, it received 71.15% of its $5.1 billion revenue from Macau. Total revenue for the company as a whole was down in 2012, but is growing again in 2013.

In the month of February alone, the Las Vegas Sands Corp. (NYSE:LVS) Strip’s gambling revenue was up 31.2%. Reports suggest that this may have to do with an influx of travelers and gambling for the Chinese New Year. This increase in revenue on the Strip affects all casinos – including Wynn Resorts and Las Vegas Sands.

Wall Street analysts expect earnings to grow 12.5% this year because of the growth in Las Vegas Sands Corp. (NYSE:LVS) gambling and increased spending in Macau.

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