Travel & tourism is one of the most heavily cyclical industries. When times are tough, the first thing many families cut back on is the expensive vacation. But several recent indicators show that the U.S. economy is on the comeback trail. That’s good news for Las Vegas, one of the great tourism destinations of the world.

Which companies stand to benefit the most? One of the most interesting is MGM Resorts International (NYSE:MGM). The company’s primary business is the ownership and operation of casino resorts; it is not affiliated with the MGM movie production business. It has a strong market share in the United States, and has been branching out successfully into the all-important Asian market as well.

In addition to the famous MGM Grand Hotel on the Strip, it operates several other well-known Vegas casinos, including the Bellagio, Mandalay Bay and the Mirage. It owns and operates 15 properties in Nevada, Mississippi, and Michigan, and has 50 percent investments in four other properties in Nevada, Illinois and Macau, China.

MGM released its most recent quarterly earnings results on August 5. The company reported earning 21 cents per share, surpassing the analysts’ consensus estimate of 11 cents. The company had revenue of $2.60 billion for the quarter, slightly more than the consensus estimate of $2.57 billion. MGM Resorts International’s revenue was up 4 percent over the same quarter last year.  Total revenue for 2013 was around $9.8 billion.

“I am pleased to report another solid quarter of growth at MGM Resorts,” said Jim Murren, Chairman and CEO.  “Our domestic business was very strong with 12% EBITDA growth in Las Vegas driven by strong performance in both our room and casino segments.  CityCenter resort operations continue to improve while in Macau we grew cash flow and margins due to a higher contribution of revenues from our main floor business.  These results clearly reflect the success of our investments and strategies in our existing properties, while we are building MGM Cotai and beginning construction on MGM National Harbor.”

The National Harbor project, now under way in Prince George’s County, Maryland just outside the nation’s capital, is particularly crucial. The Washington, DC metro area is often ranked as the most affluent in the country, and residents of the area have already shown their willingness to spend money at gambling joints in nearby Delaware and West Virginia. A major casino right in the heart of the Washington area could be a very lucrative investment.

Convention bookings by businesses are already running well ahead of the last few years’ pace, and that’s good news for Las Vegas. MGM is also increasing its geographical diversification, a good move that will protect it from a regional downturn in the Las Vegas area. 

One positive effect of the recession—at least from the gaming industry’s perspective—is that cash-strapped states have continued to loosen restrictions about gambling within their borders. This has created new opportunities for companies like MGM.

Over time, the biggest growth area for gaming will be overseas, particularly China and its environs. MGM has a 51 percent interest in MGM China Holdings Ltd (OTC: MCHVF), which owns the MGM Macau casino and is in the process of developing a resort on Cotai.

Cotai was created to provide Macau with a new gambling and tourism area since Macau is so densely populated and land is scarce. The Cotai Strip is the name used more commonly for this area where many casinos and hotels are currently being built. China and India are ascending as economic powers, and newly wealthy individuals from these countries need someplace to gamble their money away.

Through its hospitality management subsidiary, MGM Resorts International holds a growing number of development and management agreements for casino and non-casino resort projects around the world.

Another crucial revenue area, online gambling, has become increasingly mainstream in recent years. After opposing online gambling for years, the federal government said in 2011 states could issue licenses, but must limit gambling to residents who live within that state. MGM is in the process of obtaining permits to run online poker and other activities in several states.

The stock price can be volatile; the stock chart for 2014 year-to-date resembles a mountain range. The stock is currently trading around 25, whereas it was around 29 in March. For a company with strong fundamentals and exciting growth prospects, that sounds like a gamble worth taking.

Tom Scarlett is an investment analyst at Personal Finance and its parent website, Investing Daily.