Casino Giant Soars Into Buy Range On Macau's Gaming Revival
XAutoplay: On | Off Gaming revenue in Macau, the only place in China where gambling is legal, rose 23.7% last month to $2.83 billion, according to government data, following a 16% increase in April. Reuters analysts were expecting growth of 15% to 20%.
MGM Resorts climbed 2.2% to 32.41. MGM is now extended above buy range. Wynn Resorts soared 4.4% to 134.32 to a two-year high and into profit-taking zone. Hong Kong-domiciled Melco Resorts (MLCO) advanced 1.55% to 22.93. Melco, which hit a 27-month high of 23.56 intraday, also is well-extended.
Revenue has risen for the last ten months despite increased government crackdowns to thwart money laundering . Last month, Macau's Gaming Inspection and Coordination Bureau (DICJ) said it would increase its audits of the junket industry. Junkets bring high rollers to casinos with offers of credit and later settle any debts. They account for 53% of total casino revenue from Macau.
Earlier Macau had tried to limit ATM withdrawals and require facial-recognition technology at ATMs in another attempt to stop money laundering.