Macau casino stocks rise after new gaming law announcement
Macau casino stock prices rose after authorities announced details of the gaming law amendment bill.
Macau.- The shares of Macau casino operators rose after the local government announced a bill proposing a new gaming regulatory system on Friday. The bill was welcomed by the industry and investors.
Shares of all six casino operators rose, led by Sands China Ltd., which rose 14.6 per cent to close at HK$21.00 (US$2.70).
Wynn Macau rose 11.91 per cent; MGM China Holdings 11.70 per cent; Galaxy Entertainment Group 7.02 per cent and SJM Holdings 4.83 per cent. Melco International Developments closed up 5.08 per cent on Monday.
Several brokers involved in Macau’s casino industry said the new bill was a positive development as it gave investors “some relief from the uncertainty surrounding Macau’s future.” There would be up to six concessions under the government-backed bill, ending the current sub-concession system but maintaining the existing number of concessions.
It was also revealed that the concession period will be for a maximum of 10 years but can be extended for a further three years in exceptional circumstances.
The newly announced bill will be submitted to the City Legislative Council, whose members will vote on it. How long the process takes is up to the city’s lawmakers, who can also propose changes to the bill.
