Beijing Says It Will Help Macau's EconomyCasino Stocks Jump Thanks To Local Media Report |
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The Chinese government announced Friday unspecified plans to boost Macau’s struggling economy, according to a report from Bloomberg. The news comes after Macau just experienced its 16 straight month of gaming revenue decline.
Casino win accounts for four-fifths of economic output in the former Portuguese colony, the only place in China were gambling is legal. Macau’s GDP fell 26.4 percent in the last quarter.
The report from local media in Macau resulted in stock of Wynn Resorts rising the most it has since 2009 (17 percent). Las Vegas Sands and MGM Resort rose 8.1 and 4.4 percent, respectively.
Casino operators are collectively investing $20 billion into new Macau projects.
The new policies to help Macau will be put into place by the end of the year, the report said.
Indication of support from mainland China could not have come at a better time, as junket operators, who extend credit to the high rollers that account for half of the entire casino gambling market, have began considering closing their operations.
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