NEW YORK (TheStreet) -- Shares of MGM Resorts International (MGM) are gaining 2.22% to $26.21 in early afternoon trading today following a statement from Prime Minister Shinzo Abe of Japan regarding the country's plan to legalize casinos in an effort to boost tourism before the 2020 Olympics in Tokyo, Bloomberg reports.
Abe has been in office for 18 months and is working improve Japan's economic growth. He believes allowing casinos to operate inside of resorts would be a significant part of that plan.
MGM and Las Vegas Sands (LVS) are said to be considering investing billions of dollars in Japan's casino industry, which has the potential to become Asia's second largest casino market, following Macau, according to Bloomberg.
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Separately, TheStreet Ratings team rates MGM RESORTS INTERNATIONAL as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate MGM RESORTS INTERNATIONAL (MGM) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."