Business News

Macau casino shares after gaming law offers a revival to US companies

Macau’s casinos have risen sharply after officials said they had retained the licenses available to gamblers in the region, overcoming years of uncertainty for US companies based in Asian gambling establishments.

The U.S. casino operators’ shares, which traders fear could be lost if the number of license holders were reduced, were among the richest in the Asian market on Monday, Sands China jumped 14.6 percent, MGM China up 11 percent and Wynn Macau . up to 9 percent.

On Friday, officials revealed this as part of the session modified rules of the game, authorities have issued six casino licenses up to 13 years in tenders while the previous 20-year licenses expire in June.

With six major casinos already operating in Macau, experts expect all major players in the city to remain in the only Chinese city where gambling is legal.

Macau did not raise his game tax as he feared, bringing fines or suspending the state observer inside the main casino to attend board meetings, a break for staff in the region.

George Choi, a research analyst at Citi, said the announcement “should eliminate many of the financial implications” related to the amended game law, citing official clarity and “the most important thing we are looking at.”

Among other changes, the revised law will require senior executives of Macau citizens to work for at least 15 percent of licensed holders, up from 10 percent. But experts say this will not directly affect the stocks listed in Hong Kong.

“We are surprised that the government’s response to the issue of public debate has begun to decline, if not surprising,” JPMorgan investigators wrote in a statement. “We think this should help slow down the growth process and make the site – in the end – safer to save money.”

The law, introduced by the Chinese government, has said pulling particularly on the segments of casino operators, which adds to the significant reduction in the effects of the Covid-19 epidemic.

Even after Monday’s meeting ended, Bloomberg’s index of six Macau casinos registered in Hong Kong dropped by 50% from the end of 2019.

“This new law provides for short-term notice, but it does not mean that we will return to [industry’s] heyday, “said Ben Lee, an Asian sports expert and co-manager at Macau-based IGamiX Management and Consulting.

Cheong Weng Chon, Macau’s secretary for logistics management, logistics management management its management system. city ​​treasure and the “proper development of development” for gaming companies.

Lee said “it makes one wonder if he means that the money we have seen over the last two years is more or less what we will be allowed to have”.

Additional reports of Jennifer Creery in Hong Kong

Unhedged – Markets, money and strong ideas

Robert Armstrong shares what is most important in the market and discusses how well Wall Street positive ideas respond. Enter Pano so that the letter can be sent directly to your inbox every Sunday

Source link

Related Articles

Leave a Reply

Back to top button