Investors folded on Macau casino shares after Suncity Group, the spot’s biggest VIP junket company, reportedly warned its workers to take extra care when moving money to the Chinese enclave where video gaming is permitted.
Billionaire Steve Wynn was one of several casino magnates who destroyed 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 price on the news. Galaxy Entertainment was down more than three percent, and MGM China, Sands China, and SJM Holdings all saw their valuations dip by at least two %.
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 element of drawing high-stakes players to various Chinese casinos. President Xi Jinping has been trying to stop the flow of money from the mainland to Macau, a previous Portuguese territory that is today a tax haven where casinos routinely appeal to the Asian elite.
‘Investors are involved that the Suncity warning could preclude another crackdown on the industry,’ Barron’s columnist Daniel Shane penned.
Suncity Group warned workers recently to take extra precautions when moving cash to and from Macau casinos. Suncity handles mor Continue reading article