Macau gaming stocks plummet after proposed new gaming laws
Macau casino operators stocks have fallen heavily after the government suggested changes to the current city’s gaming laws amid a public consultation.
Macau.- Reports of a possible change in current gaming laws has caused Macau casino operators stocks to fall sharply. Sands China saw a 32.51 per cent drop in its shares while Wynn Resorts’ share price declined by 10.85 per cent.
According to analysts, the drop could also be related to fears surrounding a possible new Covid-19 surge as cases have risen in China in recent days. Brokerage JP Morgan Securities has downgraded Macau gaming stocks from “overweight” to “neutral/underweight”.
Macau’s Gaming Inspection and Coordination Bureau (DICJ) has confirmed that a public consultation on the revision of the city’s gaming law will run until October 29. Authorities expect to finish the amendment of the gaming law by the final quarter the year before presenting a draft bill to the Legislative Assembly.
Although the proposed changes are not confirmed, analysts believe the announcements have “already planted a seed of doubt in investors’ minds.”
Macau’s current casino licences are due to expire in June 2022.
