NEW YORK, NY - Casino stocks are on the upswing on as positive news out of China helped drive shares of gaming corporations with an important presence in Macau higher. China said its economy grew by eight.9 p.c in the fourth quarter, which was slower than the previous quarter. Analysts, however, consider these levels "robust," the Associated Press reports. 5 Star Equities examines the outlook for the Resorts and Casinos trade and provides equity research on Las Vegas Sands Corporation (NYSE: LVS - News) and Wynn Resorts limited (NASDAQ: WYNN - News). Access to the complete company reports may be found www.fivestarequities.com/LVS
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According to information published by the Macau Gaming Inspection and Coordination Bureau (GICB), gross gaming and gambling revenues in Macau totalled 269.058 billion patacas (US$33.632 billion) in 2011. MacauHub.com reports that revenues in 2011 were an nearly five-fold increase on revenues in 2006 (57.521 billion patacas). Revenues additionally jumped from 189.588 million patacas in 2010.
By the tip of 2011, there have been thirty four casinos in Macau, 20 of which were owned by Sociedade de Jogos de Macau, three by Venetian Macau, 5 by Galaxy Casino, three by Melco/PBL Jogos (Macau) and one every by Wynn Resorts and MGM Grand Paradise.
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A recent article from Forbes helps make a case for why Macau continues to grow at such a speedy pace. for instance, Macau has initiated a series of initiatives to encourage guests, Forbes reports. the little island investing in new transportation links to ease travel for Chinese guests. Now, a replacement railway line connects Macau to Guangzhou in China and a replacement road bridge links it to Hong Kong.
With China's middle category continuing to expand, Forbes highlights an increase in disposable income in China's population, which is driving the growth of mass market in Macau.
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