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Casino stocks drop as Macau slump continues

stocks drop According to Macau’s Gaming Inspection and Coordination Bureau, although total GGR for June increased by 12.5 percent to nearly $3 billion compared to the previous year, these numbers failed to meet estimated projections with analysts reporting a total capped off at just 12.5 percent for June, well below the 18 percent median estimated earlier in the year. In addition to the slow numbers for the past two months, Macau continues to endure the brunt of the negative impacts of the World Cup as sports enthusiasts throughout the region bet with illegal bookies and online operators. The casino floors are seeing less action, and the VIP-player dominated market continues to see lukewarm figures. VIP players account for nearly half of Macau’s total casino-gaming revenue, yet the previous two months have seen less frequent action. Although the 2018 World Cup started in June, Macau’s slow GGR growth already started in May of this year, leading to the fact that sports betting is not the sole reason for stagnation. U.S. casino operators have steadily been shifting their shares and betting big in Asia’s largest gambling enclave due to weaknesses at home. Wynn and Las Vegas Sands both receive more than 50 percent of their revenue from Macau and MGM Resorts International has stated that nearly 21 percent of its revenue comes from the region. Just this past February, MGM Resorts International debuted a $3.4 billion property in the region, serving as competition with the Las Vegas Sands’ Parisian and Wynn Palace. Despite big investments, a recent proposal by Chinese authorities to allow for gambling on a nearby island has also left some uncertainties over Macau’s future and dominance over the gaming market.

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