Macau’s poor revenue hit the stock market

A report showing lower than expected GGR in May has impacted several casino operators.

Macau.- Macau revenues stood at US$3.16 billion in May, better than the US$2.69 reported in April but less than the 16 to 20 per cent revenue increase that analysts had predicted. The immediate consequence was a share-price drop for several casino operators in the Chinese territories – especially for MGM China Holdings and Wynn Resorts.

As a result of the disappointing GGR, Macau casino operators saw an index decline of three per cent. MGM led the way as its share value fell by 4.4 per cent, while Wynn Resorts followed with a 3.3 per cent drop in its shares value last Tuesday.

In addition to the low revenues, a potential Chinese Government crackdown on cash outflow to and from the region has also impacted shares as reports on the issue continue to emerge. If it actually happens, it could result in several cash machines being removed from within gaming venues in Cotai and other surrounding areas.

According to experts, investors may see the cash machine withdrawal as a potential loss on funding sources for gamblers, causing a negative effect on the region’s venues and mass market gambling.