Macau’s gambling revenues have fallen below estimates for the second month in a row, sending the stocks of major casino operators like Wynn Resorts Ltd. and Las Vegas Sands Corp. into a tailspin.
Casino gross gaming revenue increased by 12.5 per cent, but it was still short of the projected rise of 18 per cent.
U.S. casino operators have been betting big in recent years on the Chinese gambling enclave amid weakness at home. This past February, MGM Resorts International debuted a $3.4 billion property in Macau to compete with the Wynn Palace and Las Vegas Sands’ Parisian.
But China’s proposal to allow gambling on a nearby island and a crackdown on cash outflows have cast uncertainties over Macau’s future. Meanwhile, spending among VIP players was softer given the mid-month start of the World Cup, said Steven Wieczynski, an analyst at Stifel Nicolaus & Co.
Wynn shares plunged as much as 9.3 per cent to $151.84 in New York. Las Vegas Sands’ 8.2 percent tumble was the biggest in more than 17 months after Bank of America Corp. downgraded the stock to neutral. MGM fell as much as 3.6 per cent.
Source: Bloomberg
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