Prime Minister Abe said his part hopes to pass a law in the next session of parliament that will legalize casinos in Japan, according to Bloomberg. The law is part of a plan to increase tourism ahead of the 2020 Olympics in Tokyo. The move could make Japan Asia's second-largest casino market after Macau.
Las Vegas Sands (LVS) and MGM Resorts (MGM) are reportedly considering investing in casinos in the market. Shares of casino operators such as Caesars Entertainment (CZR) and Wynn Resorts (WYNN) are gaining following the comments.
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TheStreet Ratings team rates MELCO CROWN ENTMT LTD as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate MELCO CROWN ENTMT LTD (MPEL) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins."