Why Wynn, MGM Resorts And Other Casino Stocks Are Gaining Today

Why Wynn, MGM Resorts And Other Casino Stocks Are Gaining Today
  • Shares of Casino operators Wynn Resorts Limited WYNN and MGM Resorts International MGM gained on Monday after being granted licenses to operate in Macau.
  • Six casino operators in Macau have been granted new licenses to continue their operations in the gambling hub, Bloomberg reported.
  • The move comes amid a weak market sentiment due to the Chinese government's reimposition of the Zero COVID policy.
  • The six operators won the 10-year licenses beating GMM Ltd., controlled by Malaysian casino tycoon and Genting Group Chairman Lim Kok Thay.
  • "One of the biggest overhangs of recent years is now removed," the report cited JPMorgan Chase analyst DS Kim. "This could serve as a strong stock catalyst because many investors -- especially long-only -- were largely staying away from the sector given this 'tail risk.'"
  • The license allotting process went on for four months after the Macau government changed gambling regulations to strengthen government control over casino operations.
  • Price Action: WYNN shares are trading higher by 5.87% at $79.33, and MGM is trading higher by 1.90% at $36.41 in premarket on the last check Monday.
  • Photo Via Company

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