As someone who likes to throw the dice on occasion, I'd find it interesting to visit a place like Macau and enjoy a new place to gamble, though the cost associated with the trip makes it nearly impossible. Las Vegas, on the other hand, is an affordable destination from most of the United States, making it much easier for the casual gamer to find a table at the variety of casinos on and off the Vegas Strip.
My Foolish colleague Travis Hoium made the argument that MGM Resorts (NYSE: MGM ) is relying on its operations in Macau, and I do not disagree. As its recent quarterly earnings show, revenue growth is driven primarily by growth in Asia. However, MGM is betting big on CityCenter in Las Vegas.
Show me the money
MGM has spent much of the last two years developing and building CityCenter, an almost 18 million-square-foot mixed-use complex. At nearly $9.2 billion, it is the largest privately financed development in the United States. It sold half of the project to Dubai World, which will help share the current losses while waiting for future gains. With more than $12 billion in long-term debt, MGM really needs CityCenter to start making some money to help the company deleverage and overcome what some have called the worst investment in gaming.
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