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Bet on gaming: 4 trades on casino stocks

Bet on Gaming: 4 trades on casino stocks
VIDEO2:0602:06
Bet on Gaming: 4 trades on casino stocks

With a regulatory crackdown in China hurting revenues in , the casino industry has been far from fun and games. But the "Fast Money" traders have their eye on some bets based on the idea that the region may be stabilizing.

Shares of Las Vegas Sands spiked almost 2 percent in extended trading after the company announced a 10.8 percent dividend increase for the 2016 calendar year. Though the company missed estimates on overall earnings, leadership's comments about conditions in Las Vegas, Macau and Atlantic City sent other gaming stocks soaring as well.

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When it comes to Asian gaming hub Macau, a lot of people worry about the decisions of policy makers in nearby China, where regulations on gambling are strict. But trader Tim Seymour said he thinks the worst is over there. Though they're "optically cheap," Seymour sees gaming company Melco Crown Entertainment as an interesting trade at $14.50 per share.

Trader Guy Adami said the same about both Las Vegas Sands and Wynn Resorts. "I think WYNN bounces in earnings," he said.

Trader Pete Najarian also likes shares of Wynn Resorts based on the prospect that weakness in Macau may have bottomed. Plus, leader Steve Wynn recently shelled out big-time sums to buy more shares in the company — a sign that the company's management has "its money where its mouth is," Najarian said.


A dealer handles gaming chips at a baccarat table inside the Venetian Macau resort and casino, operated by Sands China Ltd., a unit of Las Vegas Sands Corp., in Macau, China.
Will gaming earnings signal a bottom in Macau?

Tim Seymour

Tim Seymour is long AAPL, BAC, DO, FBT, FCX, GG, GPS, HOV, HYG, IWM, T. Tim's firm is long BABA, BIDU, MA, NFX, SAVE, SBUX, WMT.

Pete Najarian

Long AAPL, BAC, BKE, BMY, BP, DIS, DISCA, FOXA, GE, KMI, KO, MRK, PEP, PFE, he is long calls AAL, BX, CHS, FB, GDX, GE, HAIN, LC, MSFT, MTG, NRF, SLV, SWN, UAL, WMB, WYNN, YDKN, he is long puts FCX, MRO.

Karen Finerman

Karen is long BAC, C, FL, GOOG, GOOGL, JPM, LYV, KORS, M, SEDG, SPY calls, URI, she is short SPY. Her firm is long ANTM, AAPL, BAC, C, C calls, FINL, FL, GOOG, GOOGL, JPM, KORS, LYV, M, MOH, NRF, PLCE, URI, her firm is short IWM, MDY, SPY. Karen Finerman is on the board of GrafTech International.

Guy Adami

Guy Adami is long CELG, EXAS, GDX, INTC, Guy Adami's wife, Linda Snow, works at Merck.