Today stocks of gaming companies that have a strong presence in Macau dropped sharply as the news that China is planning a review of gambling overhauls, with some companies seeing as much as a 34% drop in share prices.
The news led Wynn Macau shares to drop 34%, while Sands China fell 28%. By the time it was all said and done, gambling companies with a heavy stake in Macau shed more than $18 billion in market value.
Beijing has long-held concerns that Macau is so reliant on gambling and has initiated a review of the policies of casino companies. There'll be a 45 consultation period with the industry to identify where changes are necessary. This isn't the first time that China has exerted pressure on Macau, having previously targeted junkets that focus on VIP players from the mainland.
This is the latest tumult for Macau, which has suffered financially due to the Covid-19 pandemic. Casinos were forced to close last year at the height of the pandemic and have had some protections to help keep players safe since.
Casino Listings News is following this story closely and will be updating readers as we learn more.