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Taking a Gamble on Casinos, And Not In Them

April 23, 2012 at 12:16 PM | by | Comments (5)

Like everyone else reading VegasChatter, we love Vegas. We love being able to gamble, eat and drink in a variety of different casinos that take us anywhere from Egypt to Italy. While we may be able to find other places in the world with fine dining, good drinking and gambling machines or tables, Vegas has it all under one roof (or roofs). We gamble knowing that the casino has the edge in every game they control. When we lose, someone will always say something to the effect of "these casinos don't build themselves."

Yeah, we know that gambling isn't a winning proposition all the time for us. We're cool with that. We play because it's fun. When we leave Vegas, we pine for our next trip. There are websites to read that may keep us updated on what's going on, but that may not be enough. A couple of drinks and an e-trade baby commercial later we think that maybe we should gamble ON the casinos we love to play at. We spend enough money there, maybe we can contribute to our own income. Besides, if we study our options correctly, it will give us another excuse to read about Vegas.

Over the weekend, we came across an article titled "3 Casino Stocks To Buy For Economic Recovery" and thought about what it would be like to own part of a casino company. Two of the three stocks highlighted in this article are Vegas properties -- MGM Resorts International and Las Vegas Sands. MGM owns almost half the Vegas Strip and Las Vegas Sands owns Palazzo and Venetian, two places we frequent and have definitely helped build.

Nowadays, owning a casino company isn't only about Vegas. In fact, it's becoming less and less about Vegas as almost every state in America has some form of casino gambling (check out this awesome Miami casino). It's not even about America as Macau, Cotai and Singapore are doing gangbuster business for Las Vegas Sands.

Still, for us it goes back to Vegas because that's where our memories are. We once had a dalliance with stocks, but that's in our past. We'd rather study baseball teams and video poker pay tables than company information so we don't see any stock market dabbling in our near future.

Do you gamble on casino stocks? Let us know in the comments below.

Comments (5)

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200 SHARES!

I've been a loyal RIO Hotel and Casino fan from the start...well, almost the start. My first stay at RIO was about a month before Tony Marnell opend his new MASQUERADE VILLAGE...and, all these years later,
I'm still there 5,6,7,8 weeks a year.

One year I thought..."I should buy some RIO stock"...own a part of where I loved to hang out, AND I DID...200 shares.

After that, as I'd be sittin in the Village playing video poker and the
(then) WONDERFUL MASQUERADE SHOW IN THE SKY would start, I'd look up, grin and think...now I'm a part of this. It was a good feeling.

Some how, owning stock in the casino I enjoyed and visited regularly, crated a new attitude...it was mine and the 'money' one might make on the stock, never even really came to mind until...Marnell sold the joint to Harrah's.

I FELT BETRAYED and did not care for HET at all but ya know...Las Vegas hotel/casino stocks are a funny thing. They're as volitile as Double Double Video Poker and they can be a real roller coaster ride. If you ever buy...fasten your seat belts and get ready...they can be a very
bumpy ride!

Harrah's increased the value of my stock 4X over. I took the profit, bought into Wynn Las Vegas...rode that for a while, then got out all together...my my my.

Even with all the up's 'n down's, Las Vegas casino stocks isn't the best investment one can make.
It's (dare I say...) one big gamble!
It's fun for a while. Buy for fun...
but know when to walk away.

@GREGRIO

That's some ride. For someone that doesn't understand how the money works it's probably more volatile than a penny slot and a lot less fun.

From Matt R. on Facebook

"Bought some MGM when they were on the edge of bankruptcy and it was less than $3/share.

Not enough that its quintupling since then means that much to me, though. It was mostly for fun."

There may be upside to LVS, but...

...the time to buy was March, 2009 when it was $2/sh.  It's now $57.

Of course, I had mustard seeds for balls back then and wouldn't take the risk.

@eddielasvegas

hindsight is 20 20, right?

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