After it was announced last Friday that the licenses would be retained for the American casinos operating in the Asian gambling paradise. After years of uncertainty about whether the permits would be renewed or not, good news finally came last Friday. The market reacted immediately to this positive news, causing the shares of the companies concerned to skyrocket.
Investors were previously afraid that the licenses of the American casinos, such as the Wynn and The Venetian, would not be renewed. As a result, the shares had been falling for some time, until good news finally came on Friday, making these casinos the biggest risers on the Asian stock market. Shares of the Sands China grew by a whopping 14.6%, MGM China by 11% and the Wynn Macau plussed 9% when the market opened Monday morning.
Good news in Macau
On Friday, it was announced that the 6 casinos whose 20-year licenses would expire in June would be extended by another 13 years. Macau also announced that, despite rumors, the tax on gambling will not be increased. There were also rumors that government guards would be placed in the casinos who would also be able to attend board meetings and that there would be large costs associated with renewing the license. However, all this also does not continue.
Even after Monday's rally, the shares of the 6 major US casinos in Macau have fallen by about 50 percent. “This new bill offers some clarity in the short term, but it doesn't necessarily mean we're going back to the heyday of the industry,” said Ben Lee, a managing partner at Macau-based IGamiX Management and Consulting.
