Casinos & Hotels
Regulatory Risks Hit Macau Casinos (WYNN, LVS, MPEL)
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News out of Macau, China is crushing some of the gambling stocks that have direct operations in Macau. It looks like the Chinese are considering curbing the number of gambling tables, the minimum age of gamblers that can enter the casinos, and other potential restrictions, according to the Wall Street Journal’s Asia reports. While the full details and full implications are not yet out, Wynn Resorts Ltd. (NASDAQ: WYNN), Las Vegas Sands Corp. (NYSE: LVS), and Melco Crown Entertainment Ltd. (NASDAQ: MPEL) are all getting hit on the reports.
Wynn Resorts Ltd. (NASDAQ: WYNN) just did an IPO for its assets there. Its shares are down over 4% at $65.07.
Las Vegas Sands Corp. (NYSE: LVS) has an IPO pending for its operations, and its stock is down 6.7% at $16.87.
Melco Crown Entertainment Ltd. (NASDAQ: MPEL) is effectively a pure-play stock on this and it’s down 6% at $6.74 on the news.
If you have ever seen an instant political risk event come out that can instantly change the game for an entire sector in an entire geographic area, this is one of those instances. This would not be the first such regulatory issues that have affected the region, and so far they have always managed to bounce back and survive.
JON C. OGG
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