According to gaming stock values in the month of December, Las Vegas' casino gambling industry is expected to continue growing strong throughout 2007. The Las Vegas financial consulting group, Applied Analysis, gave the forecast based on average daily stock prices of nine major gambling companies in December, which Applied Analysis indexes on a steady basis. From the same time period last year, major stocks had doubled and tripled in value.

Taking a closer look at the numbers, analysts say the stock gains were fueled by several high stakes buyouts more so than the actual performance of the companies themselves. Due to the buyout of Harrah's Entertainment by two private firms (Texas Instruments and Apollo Management), as well as a planned buyout of Station Casinos for nearly $5 billion, the gaming stocks index on Wall Street rose forty-two points to an all-time high of 461.66 points, which was approximately 39 points higher than November.

Although proposed privatizations were the principle factor in stock value growth, the Deutsche Bank says that gaming revenue brought in by Las Vegas casinos is certain to rise this year and next. Managing Director of Deutsche Bank, Andrew Barnett, stated in a recent report that the Caesar's expansion, and the additions of the Venetian Palazzo Casino and Steve Wynn's Encore will help to increase visitors, not to mention "increased spending by casino patrons".

As for the locals casino gambling market, its growth has slowed down from its staggering pace in 2005. Las Vegas residents are starting to be more frugal with their spending, which in many ways, is mirroring the rises and falls of the Las Vegas real estate market as well. Both Station Casinos and Boyd Gaming may be slowing down their aggressive expansions for now, but the buyout of Station (expected to close this year) will surely help to raise the gaming stock index once again.