Melco Crown Entertainment Ltd (ADR) (MPEL), Las Vegas Sands Corp. (LVS): How Big Can Macau Get?

Foolish bottom line
So, how big can Macau get? I doubt China will allow Macau gaming revenue to grow larger than 1% of its overall GDP. That’s just too large for any country. But Macau can double in size over the next decade, and China’s economy will grow at the same time. That could bring gaming revenue to $100 billion, an incredible size and amazing opportunity for resort operators.

Macau’s days of growing 40% annually are over, and with more supply hitting the market in 2016, investors should watch what they pay for gaming companies. With that said, Macau is still a huge opportunity that could grow around 10% annually for the next decade. Not bad for a small plot of land with little going for it other than games of chance.

The article How Big Can Macau Get? originally appeared on Fool.com.

Fool contributor Travis Hoium manages an account that owns shares of Wynn Resorts. The Motley Fool has no position in any of the stocks mentioned.

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