It’ll be some time before the consumer’s feeling strong enough to plan his next trip to Vegas. But that doesn’t mean there isn’t an investment lurking somewhere in Sin City, or other locales for that matter.
How’s that possible, especially when the gambling industry’s been hemorrhaging money throughout this recession? For two reasons, actually. A thaw in the credit freeze is freeing up much-needed capital, and Cramer’s expecting casinos to go on a spending spree. Also, states on the verge of bankruptcy are loosening their gambling laws as a way to generate revenues.
These two trends will converge in one place: slot machines. Both casinos and states will buy more of them, though for different reasons. So anyone who makes slots should be in the sweet spot.