ShareLast week, casino owners with interests in Macau were facing massive losses as news of a crackdown by the Chinese government hit the headlines. Almost $20 million was wiped off the stocks in less than 24 hours, representing a drop of 26% total value.
Spooked
Investors had been spooked when it was announced that government representatives would be taking up positions within each casino in order to oversee the day-to-day running. This is obviously not what any business in that part of the world wants to be dealing with, but only a week later it looks as if fears had been overstated.Four consultation sessions are still scheduled for the end of September and throughout October where it will be made clear exactly what changes will be made moving forward.
All gaming licenses in the city are up for renewal next year, and the rumour is that the current 20-year period is likely to be shortened considerably. If this happens then Macau casino stocks will certainly take another hit. Every casino in Macau will be constantly in fear of losing permission to operate in the region at almost a moment’s notice.
