MACAU IS LIMITING ANY NEW GAMING PROPERTIES - WILL THIS HELP OR HURT

Implications: The timing may be OK for the Government of Macau to take a second look at what is happening to this very vital land. How will this decision on their part affect the future growth of this fabulous gaming capital. It has been an investors paradise up to now and has offered some of our top gaming companies the opportunity to expand. This is a gamers dream come true - look at the numbers........   

Analysis: What is all the fuss about the Government in Macau trying to take control of just how many properties are needed to keep area on it's winning ways. If you look at the figures, you will see that Macau has already surpassed Nevada in gaming revenue. Having a downturn in business in the U.S. has also added to those figures, however, it's a solid fact that without Macau a few of our top companies would not be posting the revenue numbers they have over the past couple of years. Interesting that the anouncement by Macau boosted the stock picture for MGM, Wynn Resorts and Las Vegas Sands. I am sure that they are not unhappy about the prospects that Harrah's will either have to partner up with an existing licensee or make other plans in different parts of Asia. It would seem to me that when all is out in the open, Macau may reconsider their position some time tin the near future. They just can't make a quick turn around and lose face over a decision so recently made.

Regardless of what may transpire over the next year regarding new licences, the cash cow that is Macau will always be there. It seems that they have mastered the art of keeping the Asian and other gamblers coming back time after time. They have the knack of separating the customer from their money. That is what they are in business for and they are doing a good job of it. Since the Macau authorities rely on taxes from gaming as their leading source of revenue - the picture may change as time marches on -  they may reconsider their stance of how many more licences will become available in the future. They might give existing companies the first right of turn down... INTERESTING