Futu News, September 15. Gaming stocks fell across the board today. Among them, Sands China Limited fell more than 30%, Wynn Macau fell more than 27%, and MGM China fell more than 24%.
Yesterday, the Macao SAR Government held a public consultation press conference on amending Law 16/2001 “The Legal System for the Operation of Lucky Gaming in Casinos”. According to reports, the consultation focused on nine aspects, including the number of lucky gaming grants for operating casinos, the grant period, increasing the legal requirements for the supervision of approved companies, employee guarantees, strengthening the review mechanism for approved companies, gaming intermediaries and partners, introducing government representatives, promoting non-gaming projects, social responsibility, and clarifying criminal liability and administrative penalty systems.
According to the J.P. Morgan Research Report, policy signals indicate that as casinos are about to renew their gambling cards, the regulatory scrutiny of capital management and daily operations will be stricter. Although the actual level of regulation and execution is still the focus of debate, it has caused investors great concern, which is enough to cause Haobang's stock to be downgraded. The bank downgraded the ratings of Wynn Macau, Sands and Xinhao International to reduce its holdings, and Galaxy Entertainment, Macau Expo and MGM to neutral.
Editor/Jeffy