(Bloomberg) — Wynn Resorts Ltd. rose the most in more than six years, leading casino stocks higher following a report that the Chinese government plans steps to revive the flagging gambling industry in Macau, where betting has been in freefall.
Wynn, which generated 70 percent of its revenue in the region last year, jumped 23 percent to $63.52 at the close in New York, the biggest one-day gain since April 2009. Las Vegas Sands Corp. rose 11 percent to $40.87, while MGM Resorts International advanced 6 percent to $19.79. Their Hong Kong- listed subsidiaries also rose.
Macau’s casino-dependent economy has been suffering from an economic slowdown in China and a campaign against corruption, with gambling revenue in the betting enclave dropping for 16 straight months. Li Gang, director of the China’s local liaison office, said the government will introduce support policies by the end of this year, according to Teledifusao de Macau.
“Any potential measures to help Macau’s visitation could be a great boon for the industry, as casual gamblers are now becoming the key pillar of the industry profits in the midst of VIP weakness,” DS Kim, an analyst at JPMorgan Chase & Co., wrote in a note.
Gross gaming revenue in Macau fell by a third in September. Results released Thursday showed casino revenue declined 33 percent to 17.1 billion patacas ($2.2 billion) in September.
–With assistance from Lisa Pham and Annie Lee in Hong Kong.
To contact the reporter on this story: Lily Katz in New York at lkatz31@bloomberg.net To contact the editors responsible for this story: Cecile Daurat at cdaurat@bloomberg.net Rob Golum, Paul Barbagallo
