Five Casino Stocks To Be Watched (LVS, MGM, WYNN, PENN, BYD)

The Street released its list of casino stocks to be watched in 2010.

Las Vegas Sands Corp. (NYSE: LVS) owns 70% of the market in Macau and has a strong presence in Las Vegas through two hotel casinos and one convention center. It raised $2.5 billion through public offering of its Macau assets and its $5.4 billion Marina Bay Sands in Singapore is set to open in the first quarter of next year.

MGM Mirage (NYSE: MGM) is set to open its $8.5 billion CityCenter property in 2010. The Street expects the property to be bellwether not only for MGM, but for the entire Las Vegas strip. It expects CityCenter to eat into the market share of Wynn Resorts, Limited (NASDAQ: WYNN) and Las Vegas Sands and cannibalize MGM’s own portfolio.

Shares of Wynn have increased 23.8% year-to-date and analysts believe it is unlikely to witness the same bounce in 2010.

The Street believes there is plenty of upside to Penn National Gaming, Inc (NASDAQ: PENN) in 2010. Penn’s casinos are concentrated in Midwest, which has seen a flat visitation rates and spending. The Street views this as positive in comparison to other local markets and Las Vegas.

Boyd Gaming Corporation (NYSE: BYD) is engrossed in its attempt to acquire bankrupt rival Station Casinos and has increased its bid to $2.45 billion from $950 million. While the acquisition would give Boyd a greater market share, analysts like Chris Snow of CreditSights feel the deal could pose financial risk for Boyd.