MGM Resorts International (MGM), Las Vegas Sands Corp. (LVS): These Companies Control 50% of the Casino Licenses in China

The number of people visiting the gambling district could increase substantially, considering only about 2.5% of China’s population visits the strip each year. For contrast, 10% of the population in the United States visits the Las Vegas Strip each year.

Analysts also expect big things from the company. Earnings per share for this year are expected to grow by 37%, followed by another 28% next year. Revenue is anticipated to grow 14.7% this year, and 9% next year. Because I am perhaps more confident in the Chinese economy’s recovery, however, I am more optimistic and see revenues increasing further. That will allow earnings per share to grow as the company won’t likely have expansion expenses.

China is just getting started

The Chinese casino gaming industry grew by 25% in each of the last five years, in spite a suffering economy at the later stage of that period. With only six companies licensed to operate casinos in China, these three look to take a large chunk of the $38 billion market that is still growing. Melco is set to profit the most due to it having the highest level of exposure in the nation.

The article These Companies Control 50% of the Casino Licenses in China originally appeared on Fool.com.

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