Friday saw a sharp decline in casino company stocks dependent upon Macau for their revenues, owing the slower growth figures given out by China (NYSE:FXI).
We’re seeing a fresh selloff today on reports that tougher credit availability, particularly for private industry, will result in declining revenues at Macau, arguably the world’s premier gambling location. Companies like (NYSE:LVS), (NASDAQ:WYNN) and (NYSE:MGM) loved the influx of cash-rich Chinese into their gambling resorts in Macau, and in the process reported excellent earnings. Macau’s gambling revenues have exceeded those of Las Vegas by over fivefold.
But the tide may be turning, and “gaming revenue growth is going to come down next year. It is going to come down from 42-45 percent this year to on our estimates 18 percent,” says Philip Tulk, analyst at Royal Bank of Scotland in Hong Kong.
Las Vegas Sands (NYSE:LVS) is trading at $38.08 today, down 0.69%. Shares are up 8.95% in one year. The stock’s trading range for the year is between $34.61 and $55.47.