Macao Nightmare: What We Know About the Future of Gambling There

It's been a rough week, to say the least, for gambling stocks with exposure to Macao's once-thriving market, with most of the industry down double digits over the last five trading days. Melco Resorts (NASDAQ: MLCO), Las Vegas Sands (NYSE: LVS), and Wynn Resorts (NASDAQ: WYNN) have been the hardest hit because they generated a majority of their revenue in Macao before the pandemic began. MGM Resorts (NYSE: MGM) has two resorts in the region as well, but most of its properties are in the U.S., so it's been spared the worst of the market crash, while Caesars Entertainment (NASDAQ: CZR) is trading higher because it doesn't have a presence in Macao at all.

Sometimes a sell-off like this is an overreaction by the market, but in this case the underlying business operations in Macao could be under threat. Here's what we know today, and what we'll need to know by June 2022 when Macao's current gambling concessions are expected to be renewed.

Source Fool.com