Casino Stocks Steady As Macau Announces Another Crackdown

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Shares of Las Vegas Sands (LVS), Wynn Resorts (WYNN) and MGM Resorts (MGM) held firm even as Macau announced yet another crackdown.

This time Macau's Gaming Inspection and Coordination Bureau (DICJ), is increasing its audits of the junket industry, over worries of money laundering. Junkets are middlemen bring high rollers to casinos with offers of credit and later settle any debts. The industry accounts for 53% of total casino revenue from Macau, a special administrative region of China and the only part of the nation where gambling is legal.

Wynn shares rose 0.2% to 122.90 on the stock market today after initially falling more than 1%. Las Vegas Sands shares were up 0.3% to 57.02, trying to retake their 50-day line after falling below that level on Wednesday. MGM Resorts (MGM) shares rose 1 cent to 31.16 after falling as low as 30.50, briefly undercutting a 30.72 buy point. Melco Resorts & Entertainment (MLCO) shares were flat at 21.26.

"We have done 40 junkets, some are good, some need some improvement, we have told them to improve their accounting system," said Paulo Chan, director of the DICJ.

Earlier this month casino stocks fell after Macau had tried to limit ATM withdrawals and require facial recognition technology at ATMs in another attempt to stop money laundering.

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Casino Stocks Rise As Macau April Gaming Revenue Up 16%

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