“We believe side betting’s substantial volume provides a buffer for junket operators in managing their rolling volume and overall business,” the analysts added.
J.P. Morgan has a “buy” rating on Sands China, a unit of Las Vegas Sands (NYSE: LVS); MGM China, a unit of MGM Entertainment (NYSE: MGM); Wynn Macau, a unit of Wynn (NasdaqGS: WYNN); Melco-Crown (NasdaqGS: MPEL); and SJM.
The Market Vectors Gaming ETF (NYSEArca: BJK) has surged 20.1% over the past three months and is up 36.7% year-to-date. Looking at BJK’s holdings, LVS is 8.2%, WYNN is 7.2%, MPEL is 3.6% and MGM is 4.8%. [Gaming ETF Cashes In with 30% Gain]
For more information on the gambling industry, visit our gaming category.
Max Chen contributed to this article.