The Zacks Analyst Blog Highlights:Wynn Resorts, Caesars Entertainment, MGM Resorts International, Las Vegas Sands and Melco Crown Entertainment

CHICAGO, Sept. 16, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Wynn Resorts Ltd. (Nasdaq:WYNN-Free Report), Caesars Entertainment Corporation (Nasdaq:CZR-Free Report), MGM Resorts International (NYSE:MGM-Free Report), Las Vegas Sands Corp. (NYSE:LVS-Free Report) and Melco Crown Entertainment Limited (Nasdaq:MPEL-Free Report).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Monday's Analyst Blog:

Gambling Stock Roundup

It was a mixed week for gambling stocks. The sluggish Macau environment was in headlines, raising the concern for further decline in gross gaming revenue in September. If gross gaming revenues decline in September, it will mark the fourth consecutive monthly decline.

However, it seems that companies operating in the sector are taking a number of steps to overcome the overall sluggish environment. While Wynn Resorts Ltd. (Nasdaq:WYNN-Free Report) is waiting for a license approval for a casino in Everett on the basis of its financial strength, Caesars Entertainment Corporation (Nasdaq:CZR-Free Report) is in talks with its creditors to shed its debt.

Moreover, MGM Resorts International (NYSE:MGM-Free Report) has succeeded in receiving approval from casino regulators in New Jersey to re-enter the Atlantic City market. It had submitted its petition in 2013. (Read last week's development: Gambling Stock Round Up for Sep 8, 2014.)

Recap of the Week's Important Stories:

1.    MGM Resorts has received approval from casino regulators in New Jersey to keep its 50% stake in Borgata Casino and Spa. This will allow the company to re-enter the Atlantic City market. MGM's interest in Borgata is presently held in a divestiture trust. Per the terms of the trust agreement with the Division of Gaming Enforcement (DGE), the trustee will prepare a final accounting for approval by the DGE and the Casino Control Commission. Post approvals, MGM's interest in Borgata, approximately $86 million of cash and investments, and the title to certain leased real property in Atlantic City will be transferred to MGM Resorts. (See: MGM Resorts Gets Approval to Regain 50% Stake in Borgata.)

2.    In one other development, Wynn Resorts' $1.6 billion casino in Everett is reportedly under strict scrutiny by gambling regulators for a casino license in Boston area. One other candidate Mohegan Sun is also waiting for the same license for a $1.1 billion casino in Revere. The regulators reportedly released detailed reports indicating that Wynn Resorts has a stronger financial position to manage the casino while Mohegan Sun has a stronger overall design for its casino. Also, the regulators reportedly stated that if Wynn Resorts gets the license then it would have to consider redesigning the proposed Everett casino plan. On the other hand, if Mohegan Sun's Revere casino plan prevails, the company might have to come up with another $100 million in equity. A decision on the matter is expected soon.

3.    Caesars Entertainment is reportedly in discussion with its senior creditors to restructure a portion of its $24.2 billion long-term debt. It is working constructively with creditors to deleverage its most indebted unit, Caesars Entertainment Operating Company and create a sustainable capital structure. This would mark the beginning of the company's official attempts to restructure at least $12 billion of bonds and $6.2 billion of loans. Caesars has not been able to post profits for a very long time, failing to recover from its debt load since the recession. The company made attempts to get rid of its debts earlier as well.

4.    Based on one-week September data, a couple of analysts expect gross gaming revenue (GGR) in Macau to decline again in the month. Wells Fargo & Company expects negative high-single to low-double digit growth while Nomura Securities expects a decline in the range of 6% to 11%. GGR in Macau has been declining since Jun 2014 and has been adversely impacting the share price of companies like Wynn Resorts, MGM Resorts, Las Vegas Sands Corp. (NYSE:LVS-Free Report) and Melco Crown Entertainment Limited (Nasdaq:MPEL-Free Report) who operate in the region.

The slowdown reflects the government's crackdown on corruption, which includes restrictions on VIP gamblers to stop billions of dollars from being siphoned off illegally from mainland China to Macau. This has also affected footfall at the casinos. Limitations like the one on the use of state-backed payment processor UnionPay is making it harder for players to obtain cash to gamble. Since the new restrictions on UnionPay machines and visa restrictions came into effect, VIP customers have become more cautious and have started avoiding Macau, resulting in lower revenues. Moreover, a cooling Chinese economy has lowered consumer spending.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

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