Giant technology companies such as Zynga Inc (NASDAQ:ZNGA) and Facebook Inc (NASDAQ:FB) are already planning software developments to penetrate the online-gambling field. Facebook Inc (NASDAQ:FB) has already begun presenting its proposal internationally to begin its gold-rush venture. The technology superiority of Zynga and Facebook Inc (NASDAQ:FB), along with the experience and expertise of the Wynn and peers, will probably change the face of the industry in matter of few years.
MGM Resorts International (NYSE:MGM), one of the world’s leading global hospitality companies, has attempted to partner with big poker sites such as Full Tilt Poker and Poker Stars. MGM Resorts International (NYSE:MGM) realized it will lose a large chunk of business if online gambling becomes legal. The casino companies are taking action to prepare for the inevitable transition.
Las Vegas Sands Corp. (NYSE:LVS), the leading global developer of destination properties, is controlled by Sheldon Adelson and is one of Wynn Resorts’ most important competitors. The company is financially solid; Las Vegas Sands Corp. (NYSE:LVS) has reportedly considered a special dividend or a share buyback.
The company is “sitting” on a pile of $2.5 billion in cash, which could come in handy. It’s expanding at a rapid pace and is about to build a new resort in Macau, while considering opportunities in South Korea and Japan. According to Bloomberg, gambling revenue in Macau rose 25% in March, more than double the February pace.
The foolish bottom line
The three giant casinos running the gambling industry are poised for great growth potential. Wynn Resorts, Limited (NASDAQ:WYNN) is my pick given its strong fundamentals as well as it highly diversified business operation including casinos, hotels and restaurants.
Moreover, the potential is enormous to capture billions of dollars in online gambling market share, and Wynn was the first to step in and create an online venture.
The next big winners of the online-gaming boom will be social media giants, such as Facebook and Zynga, that will be able to expand their businesses even further by penetrating an extremely lucrative industry. Having said that, I strongly believe investors betting on Wynn are going to hit the jackpot.
The article Why Placing Your Chips on Wynn Resorts Is Your Best Bet originally appeared on Fool.com and is written by Yaniv Hirsch.
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