Casino stocks slide for a 2nd day as China enclave of Macau launches review of gambling industry

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© REUTERS/ Siu Chiu
REUTERS/ Siu Chiu

  • Casino stocks including Wynn Resorts and Las Vegas Sands dropped for a second day on Wednesday
  • The stocks dropped as Macau said it would start a regulatory review of the gambling industry.
  • Macau is the only place in China were gambling is legal.
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Shares of Wynn Resorts and Las Vegas Sands slumped Wednesday, extending losses of the Macau casino operators into a second session following government plans to begin a regulatory review of the gambling industry.

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The government in Macau, China’s only location where gambling is legal, said Tuesday it would begin a 45-day public consultation period focusing on a potential overhaul of licensing, or concession, rules, and direct supervision over the industry.

Shares of Wynn Resorts dropped 5% early Wednesday after tumbling about 11% on Tuesday. Las Vegas Sands fell 4.5% to extend Tuesday’s 9.8% decline.

Melco Resorts and Entertainment gave up 8.8% in early trade and MGM Resorts International slipped 1.7% after losing 5.9% and 3.9% in the previous session, respectively.

Officials are considering putting government representatives on the boards of licensed operators and are looking to criminalize underground banking in the industry, according to an AFP report.

The review comes as Macau has been working to recover from the blow to business dealt by the COVID-19 pandemic. It also arrives as the Chinese government has stepped up regulatory scrutiny in a wide range of industries, including technology and education.

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