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In a report published Monday, Sterne Agee analyst David Bain reported that table-only gross gaming revenue in Macau, China between June 1 and June 7 was only $410 million—a 46 percent decline year-over-year. He expects a 33 to 38 percent YoY fall in revenue for the month.
Wynn Resorts
WYNN, Las Vegas Sands
, and other large casino companies' heavy exposure to the Asian gambling metropolis has Bain feeling bearish on the industry.
He says the negative figures are especially concerning two weeks ahead of the scheduled opening of Galaxy Entertainment's Phase 2 casino. The 5-million-square-foot mega resort will likely be entering a low-demand market.
While Bain predicts that the Macau market will "generate sequentially ‘less bad' results over the course of the month," he still sees several reasons for caution, especially on the demand side. For one, Bain notes additional smoking regulations slated to be implemented by the Macau government this month, which could nudge away some patrons. He also says that additional VIP rooms in several casinos are to be "downsized or closed in the near to intermediate future," a symptom of low demand.
MGM Resorts
MGM, Wynn Resorts, and Las Vegas Sands Corp. were all down in the pre-market this morning.
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Posted In: Analyst ColorAnalyst RatingsCasinos & GamingConsumer DiscretionaryLas Vegas Sands Corp.MGM Resorts InternationalWynn Resorts Ltd.
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