4 stocks to gain with the opening of Japan's casino business

The first opportunity for casino development in the world's third largest economy

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The next place for casino development in Asia is Japan. I used to live in Japan, and I know that the game pachinko is very popular, but up until now Japan, the third largest economy in the world, has never allowed casino development.

Only now is the government considering loosening its restrictions, and the domestic interest in creating casinos is strong. Even smaller cities want to have one just to attract more tourism into the area. Of course, international casino businesses will be putting in development plans, seeing a potentially huge market of players and guests who have always had to fly overseas to play in other places like Macau and Las Vegas.

How can investors here in Australia benefit from this opportunity? One stock is Crown Resorts (ASX: CWN), James Packer's company, which has casinos in Macau, Perth, Melbourne, and one under development in Manila. It is creating an international brand of casino-based integrated resorts call "City of Dreams", and it is already making plans to bid for any licences that come up in Japan.

What's a casino without games? Gaming machines makers Aristocrat Leisure (ASX: ALL) and Ainsworth Game Technology (ASX: AGI) are the respective number one and two manufacturers in Australia, but they have a big presence in Asia also. Aristocrat has the largest market share in the Asia Pacific region. Ainsworth Game Technology is actively growing market share in the region, but at present the US gaming market was 31% of its total revenue as opposed to the 3.1% from Asia in 2013.

Ebet (ASX: EBT),a gaming systems developer and monitoring company, also has overseas business in six Asian countries, providing networked gaming solutions for electronic gaming machines. It could get involved with either Japanese domestic or international companies with its software systems.

Foolish takeaway

For investors, rather than bright lights and thrills of casinos, you want to win your own jackpot by taking part-ownership of good, growing companies as shareholders, and that payout takes time to truly build up. You shouldn't be betting here, only assessing how much money these businesses can reasonably earn.

They say "the house always wins", and that's because they stick to their business, and plan to win from the start. Do that yourself, and remember your investing principles as an intelligent investor.

Motley Fool contributor Darryl Daté-Shappard does not own shares in any company mentioned. 

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »