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October 15, 2008

THE CASINO COMPANIES WITH PROPERTIES IN MACAU CAN REST A BIT EASIER

Analysis of: MACAU UP, BUT STRIP WEAK - WYNN RESORTS | www.lvrj.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
Ron Lodge
FormerSenior Marketing Executive (former), Venetian Casino Resort Inc
Implications: Will the play in Macau continue to give a big boost to American based companies? I am sure, that as the market starts to recoup you will find added interest in this area of intense gaming. I can't think of another place that creates as much dollars invested by players on a regular basis. It's what is keeping some of the top gaming companies looking better than expected during the business and economic drop.

Analysis: Wynn Resorts is one of the major players in the Gaming Industry. They have prospered during this business bust mainly because of their cash flow from Macau. It's has been a solid source of keeping many companies afloat during this ugly economic period. We have been over this trail before and keep coming up with the same answers - some major gaming companies would not look as strong as they are without the cash cow in China. Don't get me wrong, it's outstanding that Wynn, Sands and MGM has invested into this arena and came out on the right side of the coin. Without out this investment they would certainly look a lot worse for ware during this sad turn in our economic situation.

I, as all, hope that the fix may be in, and we can look toward an upturn in the Market, housing, loans, construction and jobs. Regardless of how we place the blame, we need to address the problems that got us here. I hope our government has finally gotten to a point to know what is on the taxpayers mind to fix what is definitely broken. Hope it works. No doubt the gaming industry will survive as they have always done in past recessionary periods. It's a matter of time and some wise decision making..........


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