Las Vegas Sands and Wynn Resorts Valuations Tank on Chinese Crackdown
Skift Take
Increased oversight from Chinese regulators in Macau threatens a massive financial hit to U.S. gaming resort operators. But don’t expect this to lead to a mass exodus to other gaming markets in Asia.
Early Check-In
Editor’s Note: Skift Senior Hospitality Editor Sean O’Neill brings readers exclusive reporting and insights into hotel deals and development, and how those trends are making an impact across the travel industry.
The Chinese government’s threat of increased regulation on the casino industry puts several U.S. gaming companies in jeopardy.
Las Vegas Sands, Wynn Resorts, and MGM Resorts International all have a significant presence in Macau, a Chinese special administrative region that is also the world’s largest casino gambling market. But planned growth in the region was thrown into jeopardy last week after Lei Wai Nong, Macau’s economy and finance secretary, announced the government would strengthen its oversight on the casino sector.
Casino stock prices nosedived as a result, with Macau casino operators losing as much as a third of their value, or $18 billion, in a single day as a result. U.S. casino operators in the region lost a combined $4 billion in valuation following the news.
Join Us at Skift Global Forum in NYC September 21-23
Las Vegas Sands and Wynn Resorts may be the biggest losers in the long run due to their particular focus on the regionGet unlimited access with Skift Pro.
Subscribe now for complete access to Skift.com’s trusted coverage of the travel industry.
