Here’s Why Casino Stocks are Falling Now
After a three-year low, gambling revenue in Macau rose 5.5 percent to $3.3 billion in August from the same month last year. Macau is the only place in China where casino gambling is legal, and last year saw five times the revenue of Las Vegas. Growth has cooled recently due to a slowing economy.
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Las Vegas Sands (NYSE:LVS), MGM International (NYSE:MGM), and Wynn Resorts (NASDAQ:WYNN), which all operate in the region, are showing mixed results. Growing in the first half of August, the three stocks have fallen since a high in the middle of the month. Revenue from Macau is highly dependent on wealthy gamblers from the Chinese mainland, who may be cutting back because of the economy.