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Casino stocks down broadly, as tourist cap considered in Macau

Published 04/14/2015, 06:55 PM
Updated 04/14/2015, 06:58 PM
© Reuters.  Shares in Wynn Resorts, Las Vegas Sands and MGM were broadly down on Tuesday
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Investing.com -- Shares among top multinational casinos moved broadly lower on Tuesday, as speculation mounted that the Chinese government could cap annual tourist levels in Macau, the gambling hotbed on the South China Sea.

Wynn Resorts Limited (NASDAQ:WYNN), finished Tuesday's session as the worst performer on the S&P 500 Composite index, after news publisher Macau Business reported that the Chinese government could limit the number of tourists that visit Macau each year to 21 million. In recent months, Wynn has been downgraded by several analysts due in part to poor sales figures in Macau. On Tuesday, shares in Wynn fell 6.13 or 4.59% to 127.47.

In February, Wynn Macau reported a 32% decline in quarterly revenue following construction delays with its Wynn Palace on the peninsula. Profits for the fourth quarter also slumped nearly 50% to $139.7 million, down from $275.9 million during the same period the previous year.

Gambling in Macau has decreased sharply since Chinese president Xi Jinping began a comprehensive anti-corruption campaign in 2013.

Shares in Las Vegas Sands Corp (NYSE:LVS) plunged 2.25 or 3.88% to 55.80, while shares in MGM Resorts International (NYSE:MGM) fell 0.24 or 1.09% to 21.76.

Of the three casinos, Sands appears to be in the best position to capitalize on long-term growth in the area, Morgan Stanley (NYSE:MS) wrote in a note to investors.

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