Venetian Macau, Marina Bay Sands Most Profitable Casinos

Posted on: June 30, 2023, 02:20h. 

Last updated on: June 30, 2023, 02:20h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

Venetian Macau and Marina Bay Sands (MBS) in Singapore are the world’s two most profitable casinos — a status supporting Las Vegas Sands’ (NYSE: LVS) ranking as the largest casino operator by market capitalization.

Macau stocks
Sands China’s Venetian Macau. It’s the most profitable casino in the world, according to new rankings. (Image: Luxury Lifestyle Magazine)

The pair of integrated resorts, which represent two of the six properties in the Sands portfolio, sit atop Insider Monkey’s rankings of the 12 most profitable casinos in the world, underscoring the importance of the Asia-Pacific region to gaming operators.

According to a report by Research and Markets, the global gambling industry was valued at $449 billion in 2022, and is projected to grow at a compound annual growth rate of 6.6%, reaching a valuation of $847.5 billion by 2032. The Asia Pacific was the leading region in the gambling market, accounting for 32.4% of the revenue of the global market in 2022,” according to the research firm.

Highlighting the importance of Macau on the global gaming stage, SJM Holdings’ Grand Lisboa Palace (12th) and Galaxy Entertainment’s Galaxy Macau (seventh) joined Venetian Macau as the Macau venues on the Insider Monkey list.

MGM Dominates US Rankings

In terms of number slots commanded on the list and number of highly profitable domestic gaming venues, MGM Resorts International (NYSE: MGM) dominates.

Borgata Hotel Casino & Spa — Atlantic City’s highest-grossing integrated resort — ranked sixth on the Insider Monkey list. In the fifth spot, was MGM National Harbor in Maryland, which was the top-grossing regional casino.

That dominance translates to the Las Vegas Strip, where MGM is the largest operator. Bellagio is the fourth most-profitable casino in the world while Aria Resort & Casino ranks third, according to Insider Monkey.

Those are among the reasons Wall Street is bullish on MGM stock. In a note to clients earlier this week, Jefferies analyst David Katz reiterated a “buy” rating on MGM while boosting his price target to $64, citing strength in the operator’s broader land-based casino portfolio and in its BetMGM online wagering unit.

“In short, we had previously reflected the strength in the Las Vegas market and MGM’s non-Vegas domestic properties, although Macau warranted higher estimates for the quarter,” wrote the analyst.

Wynn Earns Spot, Too

The only other Strip venue on the list was Wynn Resorts’ (NASDAQ: WYNN) Wynn Las Vegas in the 11th spot. That venue is coming off a record-breaking first quarter.

Tribal-run casinos were well-represented on the most profitable list as Mohegan Sun and Foxwoods Resort Casino – Connecticut’s two casinos — placed tenth and ninth, respectively.

Parx Casino and Racing in Bensalem, Pa. is eighth on the list. That venue is owned and operated by privately held Greenwood Racing Inc.