Is the House Winning in Vegas?

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March 5 (Bloomberg) -- Credit Suisse's Joel Simkins discusses the state of the gaming industry with Pimm Fox on Bloomberg Television's "Taking Stock." (Source: Bloomberg)

With boyd.

What is up with them specifically?

The results are in line with expectations.

The take away is that las vegas continues to better their locals business as well as downtown.

There is a pretty high margin flow and given some cost-cutting.

That is a key driver for the company.

Is everybody benefiting from the change in las vegas?

Mgm is the biggest beneficiary of the trend.

Vegas is getting better and we have low supply.

Things are looking up.

What about the pipeline, tell me where they are spending their money?

It looks quite strong.

That is a $2.9 billion budget up from 2.6 billion and macau.

That is a huge catalyst.

The company has won a couple of domestic opportunities.

Secondly they will be out a stone's throw 10 minutes from the capital.

I have been hearing possibility that japan will be changing its gaming laws.

That could mean growth for some of the players.

Everybody has focused their attention.

We think you're six months away from legislation passing.

Your talking two years before they figure out who gets licenses.

This is more likely in 2019 or the year 2020. a lot can happen.

This is a key economic engine especially in front of the olympics.

Tell me what is going on with las vegas.

You have to look at what is going on and macau.

They have had tremendous runs.

Year to date the trends are very strong.

Revenue is up 25%. we had a softer january and a very strong february that averaged out.

There has been on a beating group -- unabating growth in macau.

We outperform on las vegas sands.

We are cautious on valuation.

You see a lot of large-cap growth money pile into the stocks and that is what has been driving the more recently.

They do not have that international profile and macau.

They went to their big transition and spun out there company.

Penn is more under pressure.

They did win a license new boston last week.

The company is not bit of a transmission -- transition mode.

We still like it, it isn't in the stance of stock.

What about the gaming industry will be a game changer if anything this year?

We're focused right now on online gaming.

We are turning our attention to california.

It is potentially the next jurisdiction to legalize.

You can look to them to find some kind of real money play online maybe this year.

I do not follow them that closely.

They can be one of the entrance in that market.

If you look at the math it is a billion-dollar poker market in california.

A lot of interested parties and a lot of hands in the cookie jar.

They have to wait until there some movement on online gaming.

What about the companies that exist, do you get the sense that mgm or las vegas sands, they would be willing to get into this business?

Him of the large-cap companies are interested like mgm and you have other folks involved on the technology side like international gaming technology.

I would say they are wild card.

He is looking to possibly craft legislation.

Why is that?

I am not sure what motivates his move.

His bread is buttered and macau and broader asia.

It is not really a game changer from their perspective.

Can we describe the situation in las vegas as saying that things are back to normal?

It is pretty good.

The numbers were above the prior peak.

Vegas is still very

This text has been automatically generated. It may not be 100% accurate.


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