6 casino stocks lose $35.3bn in value in a single day
Under the shadow of the COVID-19 pandemic, as well as market pessimism over restriction-free travel amongst the mainland, Hong Kong and Macau, the tourism dependent gaming industry suffered losses in the stock market. Six licensed casino stocks lost more than $35.398 billion in market value in a single day.
SJM Holdings (00880) again missed the $6 mark, closing at the day's low on Friday (26/11) at $5.98, down 8% from previous day close. MGM China (02282), of which Pansy Ho is Co-Chairman, also fell below the $6 mark, closed at $5.82, a 7.91% drop from previous day closing and a 62.05% "dive" from its 2011 offer price of $15.34. Sands China (01928) missed the $20 barrier, closing 7.2% lower at $19.72. Galaxy Entertainment (00027), Wynn Macau (01128) and Melco International (00200) fell by more than 4 to 6%.
Macau's gaming industry is facing internal and external difficulties, with no tourists coming abroad and more stringent regulations coming from within. A report by risk assessment firm Steve Vickers and Associates (SVA) says Macau's casino licences will expire in the middle of next year, but the government's policy address this month was again tight-lipped on the details of the re-application, including the timetable.
Indeed, as Macau officials have said, if it is not possible to re-bid the licence before its expiry next year, the licence can be extended under the existing mechanism (up to five years). However, SVA admits that the lack of transparency in the details of the licence bidding has made the existing gambling operators feel tied up. Meanwhile, the consultation on the amendments to the Gaming Law, which ended last month, states that the shareholding of Macau residents should be increased and that dividend payments need to be approved by the authorities. Such measures increase the risks in the Macau gaming industry.
(Original version – Chinese version)
澳門博彩業內外交困，外面遊客來不了，內部將面臨更嚴厲規管。風險評估機構Steve Vickers and Associates（下稱SVA）發表的報告，直指澳門賭牌明年中便到期，但當地政府本月發表的施政報告對重新競投賭牌的細節包括時間表等再度三緘其口。