Three shares in particular are performing so poorly right now that they have just hit new 52-week lows. Here's why:

The iSentia Group Ltd (ASX: ISD) share price fell to a 52-week low of $1.42 today, bringing its year-to-date decline to a remarkable 50%. The media monitoring company's shares have come under heavy selling pressure this year after a shocking half-year report which resulted in a 17% drop in earnings per share. Once again its recently acquired content marketing business was a major drag on its performance. Unfortunately with short interest building strongly, some short sellers appear to believe its shares could still fall lower from here.

The Martin Aircraft Company Ltd (ASX: MJP) share price plunged 15% to a 52-week low of 11 cents this morning. Shareholders of the jetpack company have certainly had a year to forget. In the last 12 months its shares have tumbled 75% as the excitement surrounding its products failed to materialise into meaningful sales. Whilst the jetpacks are a nice idea, I'm not convinced that there is a huge market for them. For this reason I would avoid investing in Martin Aircraft.

The Reef Casino Trust (ASX: RCT) share price dropped to a 52-week low of $3.40 this morning. Like fellow casino stock Crown Resorts Ltd (ASX: CWN), Reef Casino has had a difficult year partly due to a decline in its Chinese customer base. This led to the company reporting a 20% drop in full-year profit in February. Whilst it wouldn't be my first pick in the industry, I do think the Australian tourism boom should help the company return to growth this year. This could make it worth considering at today's low price.

The post These 3 ASX shares have fallen to 52-week lows: Are they bargain buys? appeared first on The Motley Fool Australia.

Australian Gambling Statistics suggest that casino gambling turnover jumped around 11.9% between 2014 and 2015 (this data doesn't include NSW or Tasmania so should be taken with a fair whack of salt).

Regardless, it is well ahead of the 6.2% increase in total gambling and a big part of the growth is likely coming from the notable increase in "international" or "VIP" business that coincides with the restrictions and subsequent slow-down in Macau gaming.

But where does this money filter through to? Here is a ranking of Australia's key listed casino assets by annual reported EBITDA (earnings before interest, tax, depreciation and amortization), which includes non-gambling revenues:

By far the biggest winner is Crown Melbourne, owned by Crown Resorts Ltd (ASX: CWN) and the numbers are huge. Just over $50 billion of VIP revenue was turned over by the casino in the 2016 financial year, while weighted average occupancy rate across the company's three Melbourne hotels was 94% which suggests some effective management is being used under conditions of strong demand.

It's no surprise then that Crown plans to develop an additional 388 room luxury hotel in the area to further stamp its mark on the city.

EBITDA from Melbourne alone was more than the combined EBITDA from Star Entertainment Group Ltd's (ASX: SGR) The Star Sydney, Crown's Perth resort and SKYCITY Entertainment Group Limited-Ord's (ASX: SKC) Adelaide and Darwin resorts.

Change is coming

But the most interesting point here is how it will all soon change. Crown's proposed fourth Melbourne hotel development is in addition to the company's territorial advance on Sydney with a $2 billion, six-star hotel and casino.

To counter, Star Entertainment has announced it will drop another $500 million on its Star Sydney asset with a hotel and tower expansion.

Star Entertainment also plans to spend billions on the new Queen's Wharf Brisbane joint venture and the transformation of 'Jupiter's Gold Coast' into 'The Star Gold Coast'.

The respective investments appear to make sense in an environment of strong demand, but prospective investors should be sure to consider what the impact might be if demand starts to slow for some reason.

The post Chart: How do Crown Resorts Ltd's casinos stack up? appeared first on The Motley Fool Australia.

Given I've made it my mission recently to seek out companies which can sustainably churn out exceptionally high returns it makes sense to narrow down the prospective search area.

Helpfully, one of Damodaran's data sets shows average return on equity (ROE) by industry. The data is for U.S. companies over the 12 months to January 2016, but can provide direction on where to look for prospective locally-listed companies.

The average return on equity for the almost 7,500 companies was 10% when adjusted for R&D spending. But we're not looking for average. We're looking for exceptional. As in, CSL Limited's (ASX: CSL) 50%-return-on-equity!

The table below shows seven of the highest returning industries, as well as my top picks of the ASX companies in that industry.

Source: Industry ROE data from New York University; ASX company ROE data from 2015 annual reports

The three top earners on the table are Reef Casino Trust (ASX: RCT), Vita Group Limited (ASX: VTG) and REA Group Limited (ASX: REA).

Reef Casino Trust owns The Reef Hotel Casino complex in Cairns. But before we get carried away and go all in with our chips, it should be noted RCT's huge ROE is actually supported by an accounting quirk where 50% of the company's issued units, are actually classified as debt (because of the Trust's obligation to pay out 50% of any profit), artificially reducing equity. Let's move on.

REA Group has no such quirk. In fact REA group has huge amounts of equity, but also significant earnings. It's a standout company, but the company's share price doesn't currently offer much value in my view.

Vita Group is my favourite of the three. If we consider that the company is a big volume seller of phones and consumer electronics through stores, including Telstra-branded stores, it's easy to understand the company's high returns.

Despite its low net profit margins, Vita Group's huge asset turnover ratio (Revenue ÷ Assets) and ability to fund assets without equity drives high returns for investors. Vita Group looks more conservatively priced than REA Group, but is likely more exposed to a downturn in consumer spending.

The post 9 of the highest return on equity companies to own today appeared first on The Motley Fool Australia.

The banks Australia and New Zealand Banking Group (ASX: ANZ), Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC) appear to have great dividend yields of between 5.4% and 7.3%, but those dividends could be cut in future.

That would not only lead to lower dividend yields, but could also see their share prices sink, resulting in a double hit – particularly to those investors relying on the yield for income.

Here are 5 diversified companies that could have more dependable dividends than the big four banks…

Reef Casino Trust (ASX: RCT)

Reef Casino Trust owns the casino and grounds in Cairns, and is currently paying a dividend yield of 8.2% unfranked at the share price of $3.65. The trust has paid consistent dividends over the past decade, with dividend yield averaging 9.3%. Reef Casino has a market cap of $179 million.

Automotive Holdings Group Ltd (ASX: AHG)

Automotive Holdings owns a diversified array of motor dealerships around Australia and one of the largest refrigerated logistics businesses in Australia. At the current price of $3.78, the company is paying a dividend yield of 5.9%, fully franked. Additionally, the recent selloff means shares are 16% cheaper than they were at the start of the year. Automotive Holdings has a market cap of $1.2 billion.

Mortgage Choice Limited (ASX: MOC)

The mortgage broking and financial planning business is currently paying a fully franked dividend yield of 9.2% fully franked, and has consistently paid strong dividends. Shares also look cheap having fallen from a high of $2.69 suggesting further capital gains ahead. Mortgage Choice has a market cap of $216 million.

Contango Microcap Ltd (ASX: CTN)

The listed investment company is currently sporting a partly-franked dividend yield of 6.8% at the current price of 92.7 cents. Contango has a solid history of beating the market with its investments and paying high yileds, adds instant diversification to any portfolio and appears to be trading at a substantial discount to its net tangible asset backing after tax (The last ASX update on May 4 was $1.065). Contango has a market cap of $151 million.

Dicker Data Ltd (ASX: DDR)

Dicker Data is a founder-led distributor of computer hardware, software and related products. At the current share price of $1.84, Dicker Data is yielding 8.4% fully franked and pays its dividends on a quarterly basis (great for those looking for regular income). Dicker Data has a market cap of around $295 million.

Foolish takeaway

All five companies could be valid inclusions in an income-directed portfolio, thanks to their large and consistent dividend performance over many years.

The post 5 dividend shares better than the big banks appeared first on The Motley Fool Australia.

On the stock market, our comfort with putting money towards higher risk and higher reward prospects is shown by the huge sums of money raised over the years for speculative mining exploration companies, and more recently, pre-revenue and pre-profit technology companies.

But investors wanting exposure to the huge gaming sector in the form of a business rather than a bet slip can investigate these three stocks, all of which have been in the news recently.

The local contender

Echo Entertainment Group Ltd (ASX: EGP) has been like a happy punter who has backed his team to win the Premiership lately. More specifically, they have the "winning ticket" in what has been a bruising battle for the rights to develop the prestigious Queen's Wharf precinct in Brisbane, which is set to transform the northern banks of that city.

But that development is not set to open its doors to the public for several years yet, and the company has ongoing operations at the Star Casino in Sydney, the Jupiters Casino on the Gold Coast and the Treasury Casino in Brisbane.

The most recent profit results for Echo were strong, with net profit for the six months to December 31 double the previous corresponding period at $97.1 million. But those strong results failed to excite the market, which at the time was much more unsure about the prospects of the business in light of the uncertainty about the Queen's Wharf project and imminent competition in the Sydney market.

The international heavyweight

Crown Resorts Ltd (ASX: CWN) was the loser in the long, drawn-out battle for the new casino licence in Brisbane. But unlike Echo, Crown already has a large project in the pipeline, with a high profile development well underway to bring a Crown Casino to Barangaroo in Sydney.

The company also owns the Crown properties and casinos in Perth, Melbourne as well as a boutique property in London called Aspinalls. Through a significant interest in Melco Crown, it also has interests in casinos in Macau and the Philippines.

The international operations have been hard hit by a slowdown in gaming expenditure, while the domestic market has been hampered in recent years by lower visitation and spending by international tourists due to a strong Australian dollar.

But unlike Echo, Crown has a strong position in the luxury hotel and accommodation space in the cities it operates in, and it is a slick convention and events facilitator, which attracts corporate spending to the gaming floor, and the restaurants and bars.

Crown Sydney is also an important near term catalyst for the company, and will likely put a big dent in the earnings power of the older, less favourably placed Star Casino owned by Echo.

The minnow

Unlike the previous two stocks on this list, it's unlikely that most investors will have heard of Reef Casino Trust (ASX: RCT). Reef is a single purpose trust that is the owner of the Reef Hotel and Casino in Cairns, Queensland.

Reef was in the news recently due to a takeover offer lobbed by billionaire Tony Fung and his company. The goal of Fung was to secure a foothold and casino licence in Queensland that would help facilitate the building of his behemoth accommodation and gaming venture, the Aquis Project.

However, the time limit imposed for that bid to complete was breached, and Fung has since moved on, which saw the share price of Reef fall heavily from its recent highs. Without the distraction of the takeover bid, management have announced their intention to get back to the business of running a casino and hotel.

Reef Casino benefits from a monopoly position in Cairns, as well as a strong position with the local population as an eating and drinking venue, which is something that the other casinos struggle with because they have an outsized reliance on overseas patrons.

Reef is also favourably exposed to increased visitation to the Far North Queensland region, with many domestic and international guests using Cairns as a base from which to explore the Great Barrier Reef and surrounds.

It is also trading at an attractive dividend yield of over 8%. With increased visitation to Cairns and the benefits of a renewal of the dining facilities and gaming floor flowing through to the balance sheet, Reef appears well placed to maintain a similar level of profit and payout to last year.

So which stock is worth your cash?

Putting your money into Crown or Echo is a little like backing a horse in a race: there are a lot of variables, and its difficult to accurately predict how all of them will play out. However, as a business, Reef Casino Trust has some attractive qualities, including a strong dividend yield underpinned by a monopolistic, cash generating asset.

If I had to invest (not punt) on one, Reef would be where I put my money.

The post Which one of these 3 casino stocks is worth the gamble? appeared first on The Motley Fool Australia.

Here are 5 high dividend-yielding companies that may well fit that mould. A number of them are very unlikely to ever be covered by the broker community because of their size or daily trading liquidity – a perfect opportunity for retail investors.

SG Fleet Group Ltd (ASX: SGF)

With an annualised fully franked dividend yield of 7.4% at the current price of $2.27, the provider of car fleet management, vehicle leasing and salary packaging services, looks highly attractive. SG Fleet also saw recent first half profits soar 29.6% over the previous year, and the company says it is on track to meet or exceed prospectus forecasts.

Tamawood Limited (ASX: TWD)

The Queensland-based property developer has consistently paid decent dividends, including through the GFC. At the current price of $3.56, the company is offering a fully franked dividend yield of 6.5%. No wonder the company has delivered shareholders an average annual rate of return of 19.4% over the past 10 years. In other words, turning a $1,000 investment into $5,889 over that period.

Gazal Corporation Limited (ASX: GZL)

Despite a fall in earnings per share and a reduction in the dividend, Gazal is still offering a 6.7% fully franked dividend. While recent results were messy thanks to the establishment of a joint venture, the distributor and retailer of Calvin Klein, Van Heusen and Tommy Hilfiger brands could be set to report a better second half. Highly illiquid, Gazal is often overlooked by the investing community.

RCG Corporation Limited (ASX: RCG)

Best known for its Athlete's Foot shoe stores, RCG currently pays a 6.1% dividend yield – fully franked – at a share price of 72.5 cents. What many don't realise is that the fastest growing part of the company is its RCG Brands business with brands such as Merrell, Cat and the recent acquisition of Saucony and Sperry businesses. RCG now has 18 Merrell stores and wholesale sales jumped 42% in the last half.

Reef Casino Trust (ASX: RCT)

At the current price of $3.05, Reef Casino is paying an 8.5% dividend yield – unfranked. Reef was the subject of a failed takeover attempt last year, as the bidder (Aquis) failed to get necessary approvals in time. Whether Aquis will come back for a second bite remains to be seen – but the company still appears keen to build a billion-dollar casino in Cairns. In the meantime, Reef is offering shareholders a whopping dividend.

The post 5 high dividend stocks for your portfolio appeared first on The Motley Fool Australia.

Aquis Group, which is controlled by billionaire Tony Fung, says it won't have received all the regulatory approvals required by the time the takeover offer expires on November 28. The company also says that it can't extend the offer out any further.

The Queensland Office of Liquor and Gaming Regulation have advised Aquis that it is logistically impossible for the regulator to grant approvals before the November 28 deadline, and was unable to give the company any advice of a date by which they can be granted.

As a result, Aquis has put its multi-billion dollar casino resort development in Cairns under review. The new casino was planned to include 7,500 hotel rooms, a golf course, to be built a few kilometres north of Cairns.

Aquis lodged a $214 million bid for Reef Casino Trust in November 2013, and received the backing of the company's two biggest shareholders, Accor SA and Casinos Austria AG. The two companies were also the operators of Reef's Cairns casino.

What now for Reef?

At the current price of $2.73, Reef Casino is offering a 7% unfranked dividend yield, which may be enticing to some investors. The price also looks attractive on a P/E basis, coming in at 7.2x last year's earnings.

The big question investors will be asking though is, "Will Aquis come back for a second bite in 2015, to pick up shares it doesn't already hold?"

That appears likely, given Aquis already owns 82.5% of the shares in Reef Casino. With the Queensland government keen to attract more tourists, particularly from Asia, to the state, the probability of the new billion-dollar casino resort going ahead is high.

Shareholders might also then ask, "How much will Aquis offer the second-time round?" If Aquis does come back with a second offer, it would make sense to offer a premium to the current share price, although it could be lower than the first offer of $3.40 per share, and potentially not much higher than today's share price.

That puts investors in a bit of dilemma.

There's also the risk that Aquis could offload its entire holding in Reef and walk away. But who would buy it is a thorny question. Casino groups Echo Entertainment Group Ltd (ASX: EGP) and Crown Resorts Ltd (ASX: CWN) are unlikely to want it, given their focus on large Australian capital cities.

But if Aquis does manage to offload their stake and still goes on to develop the new casino, that could severely dent Reef Casino's revenues.

It appears Reef's 7% dividend yield and cheap price may not be enough to entice investors to take on those risks.

The post Reef Casino Trust sinks 35%: Could this be time to buy? appeared first on The Motley Fool Australia.

And with the Reserve Bank of Australia expecting interest rates to remain low for the foreseeable future, rates available on term deposits are fairly mediocre while plenty of ASX-listed stocks are paying fully franked dividend yields of more than 5%.

Here are my top 10 dividend stocks for investors, in no particular order…

BC Iron Limited (ASX: BCI) is currently paying a whopping fully franked dividend yield of more than 11%, at its current price of $3.17. Add in a net cash balance of around $140 million and the iron ore producer looks tempting.

MACA Ltd (ASX: MLD) is also paying a whopping dividend yield of 12.6%, fully franked, at today's price of $2.10. The junior mining services provider holds around half its market cap in cash, has no debt, and is trading on a prospective P/E ratio of 8.5.

Insurance Australia Group (ASX: IAG) has increased its full year dividend and is paying a fully franked yield of over 6%. Earnings are expected to increase next financial year thanks to recent acquisitions, which could see the dividend rise again.

Reef Casino Trust (ASX: RCT) is paying an unfranked dividend yield of around 7.6%. But investors could see a large short term return if a takeover of the Cairns casino property trust goes ahead as planned. Aquis International has offered $4.34 per share – a substantial premium to today's $3.66 share price.

RCG Corporation Limited (ASX: RCG), the owner of the Athletes Foot chain of shoe stores, is paying a fully franked yield of 6.5% and has a policy of paying a very high proportion of after tax profits as dividends.

Coca-Cola Amatil Ltd (ASX: CCL) is paying a partly franked (75%) dividend yield of 5.2% at the current price of $9.67. But the troubled bottler appears to have hit some short-term turbulence, while its long-term outlook remains strong.

Countplus Limited (ASX: CUP) is paying a 7.1% fully franked dividend yield, at current prices of around $1.70. Mergers and acquisition activity in the accounting and wealth management sector has been rife in recent times – it only appears to be a matter of time before Countplus comes onto the radar of some of the bigger players.

Telstra Corporation Ltd (ASX: TLS) is well known for its dividend, and is still paying a fully franked 5.2% yield. A recently announced share buyback is also good news for retail shareholders.

Contango Microcap Limited (ASX: CTN), a listed investment company, is currently yielding 6.8%, 50% franked. The company's investment portfolio has delivered annual returns of 17.5% since 2004, an outstanding record by any measure, and recent performance suggests more is ahead.

And last but not least, Seven West Media Ltd (ASX: SWM) which is paying a 5.8% fully franked dividend. The owner of Channel 7 as well as The West Australian newspaper and various digital sites, Seven is the dominant free-to-air broadcaster in Australia.

So there you have 10 varied stocks in multiple industries paying substantial dividend yields. If you want an even better bet…

The post The top 10 stocks for dividend investors appeared first on The Motley Fool Australia.

Many studies over the years have also shown that dividends can make up as much as 50% of long-term returns. And famed Australian investor Anton Tagliaferro's Australian Share Fund has returned 11.6% on average each year, with 5.2% of that coming from dividends.

So if you have $20,000 to invest, here are 5 dividend stocks to consider for your portfolio…

Telstra Corporation Ltd (ASX: TLS)

It's hard to go past Telstra, with its consistent 28 cent dividend and fully franked yield of over 5%, despite the share price hitting $5.46 recently. As a bonus, the dividend could rise, and a special dividend or capital return could also be on the cards.

Insurance Australia Group (ASX: IAG)

With a 6% fully franked dividend, a large market share in Australia and New Zealand's general insurance market and strong brands, it's also hard to go past IAG.

Suncorp Group Ltd (ASX: SUN)

Expected to pay a fully franked dividend of over 6% in the 2015 financial year, Suncorp also holds surplus capital, which analysts say could be used to pay a special dividend. The company has form on that basis, declaring a number of special divs in recent years.

Sydney Airport Limited (ASX: SYD)

Paying a dividend yield of more than 5% (unfranked), Sydney Airport is a monopoly business, and has first dibs on whether it wants to own and operate Sydney's second airport at Badgery's Creek. I expect the company to say yes please!

Reef Casino Trust (ASX:RCT)

Reef owns the land and buildings containing the Cairns Reef Hotel Casino, and at the current price of $3.68, pays a dividend yield of 7.6% (unfranked). As a potential bonus, the company is the subject of a $4.34 takeover offer – a substantial premium to today's price.

If you want our absolute best idea, discover our top dividend stock for 2014/15 in this brand new report…

The post The best 5 dividend stocks for $20,000 appeared first on The Motley Fool Australia.

Aquis Reef Holdings, owned by Hong Kong billionaire Tony Fung, had planned to open an $8 billion casino resort 15kms north of Cairns, while separately making a $217 million bid for Reef Casino Trust.

Today the ACCC says it is concerned that Reef Casino was the only competitor to the new proposed resort, and was worried about customers missing out on promotions, cheaper prices and the improvement in services that two competing casinos would bring to the region.

To me that argument makes no sense at all.

If the ACCC knocks back Aquis' plans, there's only going to be one casino in Cairns – like there is now, and if Aquis assumed control over Reef Casino then there would likely only be one casino, with Reef's casino potentially closed down. Either way, there's likely only going to be one casino. Knocking it back may also have consequences for attracting other casino operators to the region.

It's an odd stance to take, given most cities around Australia only have one exclusive casino licence on offer. Will the ACCC now raise concerns over Echo Entertainment Group Ltd's (ASX: EGP) Brisbane and Gold Coast casinos, Crown Resorts Ltd's (ASX: CWN) Perth casino or SkyCity Entertainment Group Limited's (ASX: SKC) casinos in Adelaide and Darwin?

And it seems odd that the ACCC thinks the Aquis proposal, which includes 7,500 hotel rooms, 750 gambling tables and 1,500 machines is somehow not economically better for the region than Reef's existing 128 hotel rooms, 38 gambling tables and 500 machines.

While the ACC has yet to make its final decision – that's due by August 21 – Reef Casino says it would work with Aquis and the regulator to address the issues raised. The Queensland government may well have something to say about it as well – it is pushing for more casinos to stimulate the state economy and create jobs.

The post Reef Casino Trust shares fall on ACCC gobbledygook appeared first on The Motley Fool Australia.

With the Australian dollar currently trading around 91 US cents, further falls may well see an influx of big-spending tourists into Australia. In 2013, tourism's contribution to GDP hit $42.3 billion, while total visitor expenditure rose 4% to $98.5 billion.

The following companies are working hard to get their share of that spending.

SeaLink Travel Group (ASX: SLK) operates the one-and-only ferry to Kangaroo Island in South Australia. It's reportedly a popular destination, not just with international tourists, but fellow Aussies from other states. SeaLink also runs the Captain Cook Cruises on Sydney Harbour, an activity that you might imagine many tourists will consider. With Managing Director Jeffrey Ellison recently acquiring 440,000 shares on market, now might be the time to follow the smart money into SeaLink.

Reef Casino Trust (ASX: RCT) is the property trust that owns the property and the hotel for the Cairns casino. Currently subject to a takeover bid, units (shares) are trading at a large discount to the offer price. Casino resorts developer Aquis Casino Acquisitions is offering $4.354 for each Reef Casino Trust unit, but shares are currently trading at around $4.00. Given the Queensland government's shortage of revenues, it seems highly likely that the takeover will proceed. A brand new multi-billion casino is being proposed for Cairns, which is expected to generate plenty of jobs and inject some much needed capital into the state.

Indoor Skydive Australia Group Ltd (ASX: IDZ) is developing indoor skydiving facilities. Its first facility is under construction at Penrith in Sydney and further facilities are expected to open on the Gold Coast, Perth, Adelaide and Melbourne. It's early days yet, but given the popularity of outdoor skydiving, this company could be onto something. On the other hand, any investment now is highly risky given the company won't generate any revenues until at least one facility is operational, and there's no certainty that the company can genuinely make a profit after that.

Ardent Leisure Group (ASX: AAD), which operates theme parks on the Gold Coast among other leisure destinations, or Village Roadshow Ltd (ASX: VRL) which recently opened Sydney's Wet'n Wild theme park, may well be waiting in the wings to see if indoor-skydiving takes off, before developing their own facilities or taking over Indoor Skydive Australia Group directly.

Foolish takeaway

Sealink and Reef Casino Trust could be worthwhile adding to your watchlists, but you may want to sit on the sidelines with Indoor Skydive and wait to see how it plays out.

The post 3 leisure stocks to benefit from a tourism boom appeared first on The Motley Fool Australia.

Echo also owns the Jupiters Gold Coast casino, and is looking at redeveloping it.

Jupiters Townsville is being sold for $70 million to Colonial Leisure Group (CLG), and Echo is expected to book a profit of around $8 million on the sale after transaction costs. At that price, or around 10 times 2013 financial year earnings before interest, tax, depreciation and amortisation (EBITDA), it seems both parties may be getting a fair deal.

CLG owns and operates 15 hotels in Victoria and Western Australia, a brewery in WA, and a portfolio of assets in Northern Queensland, including two luxury resorts, Orpheus Island and the Daintree Eco Lodge. The company says it will develop the Jupiters Townsville Hotel and Casino into a leading regional resort, on the back of plans by the state government to support tourism in Queensland.

Premier Newman has announced plans to encourage more overseas visitors to the state, including new and revamped casinos, and upgraded infrastructure to cater for more tourist arrivals.

The Reef Casino Hotel in Cairns — with the property owned by the Reef Casino Trust (ASX: RCT) — has received a takeover proposal, and is currently awaiting approval from relevant authorities. The potential new owner plans to spend billions redeveloping the casino into a luxury resort and casino.

Echo has similar plans for its Brisbane and Gold Coast casinos, making them larger integrated hotels and casinos, although it is facing stiff competition from James Packer's Crown Resorts (ASX: CWN) in both Sydney and Brisbane.

Foolish takeaway

The key here is potential growth. Echo sees its ability to garner more growth in capital cities and the Gold Coast than on the far north coast of Queensland. For CLG, Townsville probably represents the next step in that company's evolution, being small enough to swallow without causing indigestion.

The post Echo Entertainment Group Ltd gambles on growth appeared first on The Motley Fool Australia.