Wynn Resorts, Limited (WYNN), MGM Resorts (MGM), Melco Crown (MPEL): China’s Secret Billion-Dollar Money Laundering Scheme

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As gaming expands in Asia, the illegal flow of money is a huge concern for officials elsewhere as well. Melco Crown Entertainment Ltd (ADR) (NASDAQ:MPEL) will soon open a resort in the Philippines, and the country recently increased anti-money-laundering laws just as gaming expands. Interestingly, it left casinos out of tougher regulations, hoping to capture gaming dollars going to Macau and Singapore right now.

Big money in turning a blind eye
The tie between Macau and Hong Kong makes it a prime location for laundering money out of China, whether it was earned legally or illegally. With China’s economy growing like crazy and some wealthy citizens looking to get money out of the country, it’s a perfect point of exit. The big question for investors is whether to turn a blind eye to money laundering and its importance to casino’s profits in the region. With such a large amount of these casinos’ valuation dependent on increasing revenues in Macau, is that a risk worth holding on to in your portfolio?

The article China’s Secret Billion-Dollar Money Laundering Scheme originally appeared on Fool.com.

Fool contributor Travis Hoium manages an account that owns shares of Wynn Resorts, Limited. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his CAPS picks at TMFFlushDraw. The Motley Fool has no position in any of the stocks mentioned.

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