Macau Gambling Stocks Plunge 40 Percent First Half of Year: Dow Drop 530 Points
The Macau gambling sector has taken a major hit over the past six months with shares plunging by as much as 40% across the board.
“It has been one thing after another,” Robert Drake, CEO of Galaxy Entertainment, recently told Reuters after that company reported a 66 percent decline in first half of year profit compared to last year.
Since the start of 2015, the Chinese Government has engaged in an aggressive anti-corruption campaign placing gamblers in its cross-hairs. They have, however, loosened transit visa restrictions in July to permit mainland visitors to stay longer and travel more frequently to the city.
Galaxy claims the Macau gambling industry hit bottom in June but Friday’s worldwide market instability, brought on primarily by fears over China’s global economic slowdown, can’t help matters. The Dow fells 530 points by day’s end to close out the week.
Shares of Wynn Resorts Ltd, which maintains a high presence in Macau, hit a 52-week low, declining $3.81, or 4.45 percent, on the Nasdaq, to close at $81.77.
Las Vegas Sands Corp., which derives 65 percent of its earnings from Macau, witnessed a 91 cents decline or 1.86 percent to close at $47.99 on the New York Stock Exchange by close of day Friday.
- Aaron Goldstein, Gambling911.com
