Macau: The Right Bet for Casinos

(Updated with additional information on MGM's debt exchange offer, and closing stock prices.)

NEW YORK (TheStreet) -- Macau is looking like a lucrative bet for casinos.

The Chinese region reported today that its gaming revenue more than doubled in September, its third consecutive monthly increase.

This is good news for casinos like Las Vegas Sands(LVS Quote), MGM Mirage (MGM Quote)and Wynn Resorts(WYNN Quote) -- all of which have operations in the area.

Las Vegas Sands and Wynn are also in the process of initial public offerings of their Macau assets on the Hong Kong exchange.

On Wednesday, Wynn announced that it raised $1.6 billion in its offering after it was priced at $1.30 a share, the top of the expected range for the offering.

Macau is the only place in China where gambling is legal.

But despite Macau's success, investors are still weary of the sector. Shares of Wynn sank 7% to close at $65.60, Las Vegas Sands tanked 8% to $15.45, MGM plunged 11% to $10.71 and Isle of Capri Casinos(ISLE Quote) was off 5% to end the day at $11.22, continuing the sector's overall decline of the past few weeks.

Separately, on Thursday MGM said it terminated its debt exchange offer because not enough debt-holders accepted the deal.

The offer gave holders the opportunity to exchange up to $782 million in 8.5% senior notes due in 2010 for up to $500 million in 10% senior notes due in 2016.

-- Reported by Jeanine Poggi in New York

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