Casinos Rally As Macau, Nevada Gaming Revenues Hit Multiyear Highs
Las Vegas Sands (LVS), Wynn Resorts (WYNN) and MGM Resorts (MGM) shares jumped Wednesday after Macau announced that overall gaming revenues rose to their best level in more than two years. That comes a day after Nevada reported its strongest take in nearly four years.
Macau gross gaming revenue soared 18% vs. a year earlier in February to $2.88 billion, the highest since January 2015, easing fear the China's only legal gambling enclave was losing steam. Macau gaming revenue turned higher in September, ending a long slump, but January's 3% gain was less than expected.
Meanwhile, Nevada announced that state gaming revenues popped 12% in January to $1.04 billion, the best since February 2013. Clark County, which includes Las Vegas, saw a 14.3% gain to $925 million. The Las Vegas Strip had 14.4% increase to $532 million.
Las Vegas Sands rose 4.3% in afternoon trade on the stock market today, retaking its 200-day and 50-day moving averages and breaking a recent downtrend. Wynn Resorts shot up 6.9%, a day after creeping above its 200-day line. MGM Resorts 2.1%. Melco Crown Entertainment (MPEL), which has heavy Macau exposure as well, climbed 5.3%.
Sands and Wynn are heavily exposed to Macau, opening huge new casinos there late last year. MGM is the most-Vegas centric of the big three, but is opening a new Macau casino resort later this year.