GXYEF - Macau casino stocks slump on anxiety over heightened government supervision

There is more selling pressure in the Macau casino sector after the Macau government said it is looking to increase direct government supervision of casinos to monitor operations. The step in government supervision could also raise concerns on how the gaming license renewal process will shake out. Wynn Resorts (NASDAQ:WYNN) -7.40%, Melco Resorts & Entertainment (NASDAQ:MLCO) -7.80%, Las Vegas Sands (NYSE:LVS) -7.20% and MGM Resorts (NYSE:MGM) -1.55% are all lower in premarket action, while the Hong-Kong traded names like Galaxy Entertainment (OTCPK:GXYEF) and SJM Holdings (NYSE:SJM) already closed down for the day. The latest regulatory development adds to concerns already building that the Macau recovery could be impacted by tightening following a COVID outbreak in Fujian. MGM has fared better than its Macau peers over the last year due to its higher level of diversification.

For further details see:

Macau casino stocks slump on anxiety over heightened government supervision