Slowdown in Macau Cripples Gaming ETF

The gambling industry-related exchange traded fund is crapping out as revenue slows in Macau, the world’s largest gambling market.

The Market Vectors Gaming ETF (NYSEArca: BJK) declined 1.4% Thursday on heavy volume that was over twice the daily average and dipped below its 200-day simple moving average. BJK is down 6.1% year-to-date.

Las Vegas Sands Corp. (NYSE: LVS), the world’s largest casino operator, stated that earnings over the second quarter was 85 cents, which  missed the 89-cent average estimates, while sales grew at a slower-than-expected $3.62 billion, compared to calls for a $3.79 increase, reports Christopher Palmeri for Bloomberg.

Sands China, the largest unit of Las Vegas Sands, revealed adjusted property earnings of $800.6 million, which fell short of average estimates for $856.5 million.

LVS was down 0.4% and Sands China was down 1.2% Thursday. BJK allocates 8.0% toward Las Vegas Sands Corp and 7.4% in Sands China.

Betting in Macau, the only part of China where gambling is legal, is on the decline on lower spending from high-rollers, or VIPs. The industry saw revenue in June diminish 3.7% to $3.4 billion, the first decline since June 2009.

Macau has been cracking down on illegal transactions and imposed new regulatory changes, such as restricting the use of China UnionPay Co.’s debit cards at casinos. [Macau Illegal Transaction Crackdown Puts Gaming ETF in the Red]