Macau Gambling Numbers Raise Casino Concerns as Stocks Tumble
(Bloomberg) -- Wynn Resorts Ltd. and Las Vegas Sands Corp. tumbled after revenue in Macau fell short of estimates for a second straight month.
Casino gross gaming revenue in the world’s biggest gambling hub in June rose just 12.5 percent, below the 18 percent median estimate of eight analysts surveyed by Bloomberg. May gambling figures also disappointed investors.
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 percent 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 percent.
©2018 Bloomberg L.P.