“Macau’s September gross gaming numbers rose 7.4 percent from last year, a number that surpassed the 4 percent growth estimate and sent casino stocks soaring on Monday. But Chad Morganlander, portfolio manager at Stifel Nicolaus, sees the excitement over Macau’s numbers as short-lived,” reports CNBC.
Las Vegas Sands (NYSE: LVS) and Wynn Resorts (NASDAQ: WYNN) are dominant names in Las Vegas but the companies, two marquee holdings in BJK, are also big players in Macau, levering each to Chinese gambling trends.
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Since hitting record high growth in early 2014, Macau has steadily seen profits dwindle after the Chinese government began cracking down on corruption, which deterred many high-rollers. However, revenue numbers there rose in September.
“Macau’s gambling industry boomed this year as some of the world’s biggest gaming companies made some of their biggest long-term investments in the region. In August, Wynn Resorts opened the lavish Wynn Palace, which cost $4.1 billion to build, to complement its Wynn Macau mainstay, while Las Vegas Sands’ Parisian Macao hotel and casino opened its doors in mid-September. The companies’ focus on Macau helped turn the region’s gaming revenues around after more than two straight years of decline,” adds CNBC.