The Macao government plans to amend the gaming legal system, including introducing government representatives into casino operators and increasing the proportion of shares held by Macao residents in gaming enterprises.

JPMorgan Chase & Co said in a research report that the policy signal indicates that the regulatory review of capital management and day-to-day operations will be more stringent in the process that casinos are about to renew their gambling cards. Although the actual level of regulation and enforcement is still the focus of debate, it has worried investors enough to downgrade gambling stocks. The bank downgraded Wynn Macau, Sands and Melco to underweight, while Galaxy Entertainment, SJM and MGM were downgraded to neutral.