Equity, you want growth.
Where is their gross today, particularly in a place like mac au.
50% of the world population lives within a flight there.
Is it a winning trade, no matter what happens in the world?
The way we look at it, a lot of the gaming names that we cover are not really have a lot of exposure to it, it has been a fantastic year for them because a lot of the free cash flow generated out of macau has gone to debt, and that is fabulous.
In the gaming space, you have stocks with exposure to macau and stocks without exposure to macau.
Who is your favorite, richard?
We would recommend las vegas sands.
Nobody has great here -- gray hair except me.
It used to be highly protectable cash flow.
In your world, richard, are the cash flows as predictable as they have always been?
Assuming the revenue is there , the cash flows -- lockstep.
We are at a point where cash flows, profits, are going to be growing at a greater pace than revenue because of what we call operating leverage in the business.
After a certain point in revenue, the profits kick in.
How do you feel about the casinos popping up, whether it is in cleveland, delaware, boston?
Could one say it is getting saturated?
I was there the day they opened the horseshoe casino in cleveland.
To me it did not feel like a booming business.
Incremental growth is good, but at a certain point you face economic saturation.
The risk that comes with that is cannibalization where you have new casinos stealing business from existing casinos.
I agree with brian.
It is not an open secret at this point.
Every jurisdiction that legalizes, you have a neighboring jurisdiction fighting for the same business because they do not want tax dollars going away.
Let me start with you.
The number one question that i have, and that is it has been a great year.
The question -- how do you stay on board the companies that you follow?
I think going into 2014, the payroll tax cut will be a positive one for the consumers overall.
In las vegas you have a strong convention and event calendar, and that will help.
Richard, will that follow through on the good year we have had?
I think so.
We have seen las vegas improved for 2014 as opposed to 2013. i visit properties, work for my room.
I do not have a lot of fun.
Here is a city that is known for casinos that has never been a lot of fun.
Is it ever going to find winning combinations?
That is the trouble with atlantic city.
Its business has been cut in half over the last five years, and that leads into new jersey going for online gaming.
They are thinking the original model we have is not working, so we need to generate some incremental business with something new.
Online gaming puts people on opposite sides.
This is a hot topic.
Where are we going in 2014? a lot of states will see new jersey numbers come out -- a fairly decent start.
Living on the border of new jersey, a lot of penetration will begin starting next year.
A lot of people are skeptics because sheldon adelson has said for moral reasons he does not like online gaming.
Is he talking his book?
I don't think he is.
He has the capacity to do it.
I think he makes the point but there is a fundamental difference between getting out of your house, going to a casino, doing it that way versus staying at home.
It is ok that those little old ladies are rolling up in wheelchairs and hitting the slots?
When we are talking moral, where is the line?
At home they just see what you are doing but they cannot look at you as you are doing it.
That is a big difference.
I once won $40 at the lottery.
He is actually playing bingo at a church saturday night.
The mega thing the other day, does that affect your business?
Is that such a big deal that there is a 24-hour period where revenues go down because everybody is at the local drugstore?
I do think when people get into lotteries -- so maybe the expanding lottery numbers are good for the business -- you get into, i can gamble, i can win money.
Do the europeans do this better than us?
The european models are different.
The brick-and-mortar casinos are far smaller than in the u.s. people recognize harris or the poor got a -- or the borgata.
That is monte carlo.
You cannot really compare monte carlo to a casino in cleveland.
How is sports betting doing?
It is not really a big business segment for our companies, but the online poker and other casino gaming is becoming a big part of the business.
Betting on giants this year has been successful?
Not so much.
Betting on the giants, the new york knicks, or the brooklyn nets, losing across the board.
I am fascinated by the predictability of the cash flows given all the other issues out there.
Sounds like tom and i need to take a road trip.
Where would you go?
If you want to get your finger on the pulse of gambling, you say vegas.
Vegas is the destination marketing.
A human interest question -- for you three, the number one place to stay in vegas.
Next year, caesar's palace given that you will see the link open to you.
A shout out to deutsche bank.
This text has been automatically generated. It may not be 100% accurate.