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Finally, after long negotiations, the leading casino operator Las Vegas Sands Corp. (LVS - Analyst Report) has decided to drop its $30 billion integrated resort development project in Madrid, Spain.

In late 2012, the company announced its plan to construct an integrated resort project – EuroVegas – in Madrid, but only if the project provides 20% cash on return. The integrated resort, if developed, would have boasted six casinos, 12 hotels, convention center, golf courses, theaters, shopping centers and restaurants. As per Reuters, the decision of abandoning the project was taken after the Government of Spain and Las Vegas Sands failed to agree on certain key legal terms and conditions.

We remained skeptical about this project considering the weak economic condition in Spain. The market reacted positively to the news, and Las Vegas Sands’ stock price increased 0.5% to close at $76.57 on Friday.

The company has also stated that it will now solely focus on expanding its presence in the emerging Asian market especially in Japan and Korea citing plenty of growth opportunities.

The demand for resorts in the international market is greater than that in the U.S. and the pace of economic recovery is particularly fast in the underserved Asia-Pacific region. Las Vegas Sands currently has a solid presence in Macao and Singapore market. Las Vegas Sands generates over 80% of the revenues from its Macao properties. The visitation pattern in Macao is continuously growing. In third-quarter 2013, Las Vegas Sands welcomed nearly 16.7 million visitors in Macao.

Las Vegas carries a Zacks Rank #2 (Buy). Investors interested in the gaming industry may consider stocks like Bally Technologies, Inc. (BYI - Snapshot Report), Century Casinos Inc. (CNTY - Snapshot Report) and Melco Crown Entertainment Limited (MPEL - Snapshot Report). All these companies hold a Zacks Rank #2.

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