MGM Resorts Stock Is A China Hedge

Casino operator MGM Resorts (NYSE:MGM) has seen its stock fall sharply in recent weeks but is still outperforming its peers – Las Vegas Sands (NYSE:LVS) and Wynn Resorts (NASDAQ:WYNN).

The diversified operator is the only of the big-three casinos that turned a profit in Q3 2021, according to its earnings report. Most importantly, it has the least exposure to the Macau gaming industry, which has come under regulatory scrutiny by the Chinese government in its effort to root out corruption. This makes MGM more of a hedge when its two largest competitors receive nearly half their revenues from Macau.

With gambling licenses coming up for renewal in 2022, the stakes are high for Macau casinos as the Chinese government is considering placing its agents in the casinos moving forward. Its BetMGM Igaming and sportsbook app is live in 16 markets, with 20 expected by the end of Q1 2022 and generating nearly $800 million in 2021 revenues alone. Prudent investors seeking the best of breed and least Macau exposed casino giant can watch for opportunistic pullbacks in shares of MGM Resorts.

Source: https://www.investing.com/analysis/mgm-resorts-stock-is-a-china-hedge-200611824