Investors folded on Macau casino shares after Suncity Group, the spot’s biggest VIP junket company, reportedly warned its workers to take extra caution when moving money to your Chinese enclave where video gaming is permitted.
Billionaire Steve Wynn had been one of the casino magnates whom lost money on Monday, as Macau casino stocks dipped on continued uncertainty about the future of VIP junket operators. (Image: Vincent Yu/Associated Press)
Wynn Macau, traded on the Hong Kong Stock Exchange, lost almost five % of its share cost regarding the news. Galaxy Entertainment was down more than three percent, and MGM China, Sands Asia, and SJM Holdings all saw their valuations dip by at least two percent.
According to Barron’s, a financial newspaper, investors are fleeing on concerns that China’s anti-corruption campaign is soon to target VIP junket operations, for a long time a vital part of drawing high-stakes players to various Chinese casinos. President Xi Jinping has been trying to stop the movement of cash from the mainland to Macau, a former Portuguese territory that is today a tax haven where casinos routinely focus on the Asian elite.
‘Investors are involved that the Suncity warning could preclude another crackdown on the industry,’ Barron’s columnist Daniel Shane wrote.
Suncity Group warned employees recently to take extra precautions when money that is moving and from Macau gambling ent (more…)