Why Macao's Casino Stocks Got Crushed Today

why macaos casino stocks got crushed today

Sumary of Why Macao's Casino Stocks Got Crushed Today:

  • More concerning is potential government restrictions on gambling in the region, which could turn gambling stocks from steady growth stocks to risky bets overnight.
  • So what COVID-19 breaking out in the Fujian province may be a big short-term news item for Macao, but in the long term the real concern for investors should be the government’s potential regulations.
  • 29 in order to get input on what rules gambling concession holders should have to live by.
  • All six concessions expire in June 2022, which the market seems be assuming will be extended.
  • But the rules for concessions may not be the same as they are today.
  • The government is contemplating going from six gaming concessions to two, adding additional oversight, and even putting limits on dividends paid by Macao’s gambling companies.
  • To be clear, there weren’t any new rules announced and we don’t know what the final proposal will be, but investors clearly don’t like what they’re hearing today.
  • Not only is there uncertainty about concessions, we also don’t know what potential regulations might be put in place that might limit revenue in Macao or how future expansion might be impacted.

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