Thanks in large part to improving data out of Macau, the world’s largest gambling hub, the VanEck Vectors Gaming ETF (NYSEArca: BJK) is up 14.6% year-to-date.
Some industry analysts see opportunity with Macau stocks. Macau, the only Chinese territory where gambling is legal, is the world’s largest gambling hub. The city is trying to rebuild its market with shops, restaurants, entertainment shows and other non-gaming attractions to bring in more middle-class tourism. For instance, Galaxy Macau is planning a Broadway.
Junket operators, who account for two-thirds of betting in Macau, lend to Chinese players who are limited on how much money they can bring over from the mainland, and the operators collect gambling debt.
Conversely, other market observers believe caution is warranted with casino stocks.