{"id":10054,"date":"2020-09-16T21:59:15","date_gmt":"2020-09-16T21:59:15","guid":{"rendered":"https:\/\/focusgn.com\/asia-pacific\/?p=10054"},"modified":"2026-04-24T01:46:42","modified_gmt":"2026-04-24T04:46:42","slug":"us-owned-casinos-downgraded-over-macau-risk","status":"publish","type":"post","link":"https:\/\/focusgn.com\/asia-pacific\/us-owned-casinos-downgraded-over-macau-risk","title":{"rendered":"US-owned casinos downgraded over Macau risk"},"content":{"rendered":"\n

Roth Capital Markets has revised its rating for MGM, Wynn Resorts and Las Vegas Sands from \u201cbuy\u201d to \u201cneutral\u201d.<\/p>\n\n\n\n\n\n\n\n

Macau.-\u00a0Financial analysts fear gaming revenues are not recovering fast enough in Macau<\/a><\/em><\/strong>, and some are downgrading the ratings of US casino operators heavily invested in the city.\u00a0\u00a0<\/p>\n\n\n\n

That’s been the case for Wynn Resorts, Las Vegas Sands and in part MGM, which were allo downgraded by\u00a0Roth Capital Markets from \u201cbuy\u201d to \u201cneutral\u201d on Wednesday.\u00a0\u00a0<\/p>\n\n\n\n

In the case of Wynn, analyst David Bain noted its peer-high VIP reliance combined with VIP liquidity risks, heightened concession renewal risks<\/a><\/em><\/strong> for US operators, and lesser\u00a0Cotai\u00a0weighting among other reasons for the change in the rating.\u00a0<\/p>\n\n\n\n

Wynn Resorts was also recently downgraded by\u00a0Goldman Sachs<\/a><\/em><\/strong>, which changed its status from \u201cbuy\u201d to \u201chold\u201d, mainly due to the performance of its Macau business.\u00a0<\/p>\n\n\n\n

Explaining the rating switch for Las Vegas Sands, Bain said Macau market share losses were \u201clikely to continue through CY21,” and that Macau risk factors “have become more acute.”\u00a0\u00a0<\/p>\n\n\n\n

He added that visitation is not expected to reach 2019 levels before late 2021, and that the imminent\u00a0opening\u00a0of\u00a0Grand Lisboa Palace<\/a><\/em><\/strong>, a casino and resort operated by SJM,\u00a0will likely take some of the interest away from LVS.\u00a0<\/p>\n\n\n\n

MGM was also downgraded by Roth Capital Markets, mainly due to higher volatility tied to its Las Vegas Strip operations. Bain pointed out that MGM\u2019s Macau concession renewal is also at risk under current US-China tensions.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Roth Capital Markets has revised its rating for MGM, Wynn Resorts and Las Vegas Sands from \u201cbuy\u201d to \u201cneutral\u201d.<\/p>\n","protected":false},"author":2,"featured_media":10056,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"Roth Capital Markets has downgraded the ratings for MGM, Wynn Resorts, and Las Vegas Sands from \"buy\" to \"neutral,\" citing concerns over the slow recovery of gaming revenues in Macau. Key factors include VIP liquidity risks, heightened concession renewal uncertainties for US operators, and anticipated market share shifts due to new competition. Goldman Sachs also recently downgraded Wynn Resorts.","focusai_entities":"Roth Capital Markets, MGM, Wynn Resorts, Las Vegas Sands, Goldman Sachs, SJM, David Bain","focusai_location":"Macau, Cotai, Las Vegas Strip","focusai_target_profile":"ceo_executive (0.9), regulator (0.7), compliance_legal (0.8), operator_casino (0.9), payments_fraud_aml (0.7), investor_analyst (1.0), supplier_vendor (0.7), journalist_researcher (0.9)","focusai_suggestions":[{"label":"Macau Concession Impact?","query":"What specific regulatory or political changes in Macau's concession renewal process are heightening risks for US-based operators like Wynn and MGM?"},{"label":"VIP Segment Outlook?","query":"How are the identified VIP liquidity risks in Macau expected to impact the GGR and NGR contributions from this segment for operators like Wynn Resorts in the coming quarters?"}],"footnotes":""},"categories":[161,16338,163,158],"tags":[12436,257,2319],"class_list":["post-10054","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news","category-east-asia-news","category-finance-news","category-slider-home","tag-casinos","tag-macau","tag-us"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/10054","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=10054"}],"version-history":[{"count":2,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/10054\/revisions"}],"predecessor-version":[{"id":10074,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/10054\/revisions\/10074"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/10056"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=10054"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=10054"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=10054"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}