Why Macao's Casino Stocks Got Crushed Today
Casino stocks with exposure to Macao took a nosedive on Tuesday after a few announcements from the government. One was that COVID-19 cases are on the rise in the Chinese province of Fujian and that could result in fewer visitors to Macao. More concerning is potential government restrictions on gambling in the region, which could turn gambling stocks from steady growth stocks to risky bets overnight.
The impact was swift on the stock market. Shares of Wynn Resorts (NASDAQ: WYNN) fell as much as 13.8%, Las Vegas Sands (NYSE: LVS) dropped 13.9%, and Melco Resorts & Entertainment (NASDAQ: MLCO) was off 9.1% at one point. The stocks are down 11%, 10.4%, and 6.4% at 3:15 p.m. EDT. The drop has even swept up MGM Resorts International (NYSE: MGM), which fell as much as 5.5% today.
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Source Fool.com
