I think every major Aus city will be looking at getting multiple casinos (and why stop at two) now that NSW (and Crown) have demonstrated that there is no requirement for players to have a city-wide monopoly to pay lots of taxes. Does not appear to be much more dificult for regulators to police two casinos over one single one.
I think we will see EGP and CWN running on lower multiples with competition breaking out, eventually reducing profits.
Additionally Macao appears to be going crazy with investment. Have been watching MPEL's chart to get some idea of how the sector is travelling in China. Seems to have had a 10% approx fall in the last month, but this is in the context of a very strong uptrend - so hard to read anything negative into that. If high rollers were to be squeezed - might impact the SP of MPEL a bit before CWN or EGP are affected. However the competition is still intensifying IMO.
EGP Price at posting:
$2.76 Sentiment: ST Sell Disclosure: Held
