How you could win big with these 3 gambling shares

It’s a commonly held belief that people like to gamble more in tough times as they try to lift themselves out of an unhappy situation.

That could be true, in which case this could make leisure and entertainment (or gambling) stocks some of the best to own in a recession. The following three stocks could be worth a punt at the current prices:

Crown Resorts Ltd (ASX: CWN)

Crown is Australia’s largest entertainment and gambling company with a market capitalisation of $9.14 billion.

It has large casinos in Melbourne and Perth, with another planned for Sydney. It could be one of the best stocks to own over the coming years to take advantage of the growth of tourists who want to gamble and stay in the best hotels.

Crown is currently trading at 23x FY17’s estimated earnings with a pledged 60c annual partially franked dividend which equates to a yield of 4.78%.

Star Entertainment Group Ltd (ASX: SGR)

This is the owner of The Star casino in Sydney, it has a market capitalisation of $4.58 billion.

This business will also be a beneficiary of the growing number of tourists that are arriving into Australia every year. Sydney Airport Holdings Ltd (ASX: SYD) reports the growing number of international visitors every month and The Star could benefit nicely from the rising passenger numbers once they arrive into Sydney.

Star Entertainment Group is currently trading at 19x FY17’s estimated earnings with a grossed-up dividend yield of 3.86%.

Tatts Group Ltd (ASX: TTS)

Tatts is a betting provider and operates a number of lotteries. It currently has a market capitalisation of $6.56 billion.

Management are finding it tough to increase revenue. In its latest report to 31 December 2016 it disclosed that total revenue and other income decreased by 6.9%, which was a big cause in the net profit after tax decreasing by 16.5%.

Tatts is currently trading at 27x FY17’s estimated earnings with a grossed-up dividend yield of 5.59%.

Foolish takeaway

I think Crown and Star Entertainment could beat the odds and outperform the market over the next few years. Out of the three, Crown could be the best stock to own with the number of growth projects that it has planned for the next decade.

If gambling isn't your style of investment, you should consider these types of growth stocks that could be odds-on winners for your portfolio.

Top 3 ASX Blue Chips To Buy In 2017

For many, blue chip stocks means stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2017."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

If you're expecting to see the likes of Commonwealth Bank, Telstra and Wesfarmers shares on this list, you'll be sorely disappointed. Not only are their dividends growing at a snail's pace, their profits are under pressure too due to the increasing competitive environment.

The contrast to these "new breed" blue chips couldn't be greater... especially the very real prospect of significant share price gains, something that's looking less likely from the usual blue chip suspects.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Crown Resorts Limited and Sydney Airport Holdings Limited. Motley Fool contributor Tristan Harrison has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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