Casino Stocks Crushed On Report Macau Will Curb ATM Cash WithdrawlsSheldon Adelson Loses $3 Billion Thanks To Move |
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In its prolonged effort to have the Macau casino industry end its dependence on the high roller, the Chinese government has decided to place a cap on ATM withdrawals in the city, according to a Bloomberg report.
Beijing is imposing a daily cash withdrawal limit of 5,000 patacas ($626) on China UnionPay Co. cards, which about half of gamblers in Macau reportedly use.
The changes go into effect on Saturday, but the news has sent casino stocks plummeting. According to Bloomgberg, Wynn Resorts dropped as much as 12 percent, while Las Vegas Sands (13 percent), MGM Resorts International (4.3 percent) and Melco Crown Entertainment (14 percent) all suffered as well.
The plunge for Sands reportedly lost Sheldon Adelson, its founder and CEO, more than $3 billion. He’s net worth is still pegged at $28.5 billion.
Despite the effects, MGM CEO Jim Murren was quoted as saying that the decision from China is bad for the short-term, but it will be positive in the long-run. MGM plans to open a $3 billion casino in Macau next year. Wynn and Sands both opened multi-billion-dollar casinos there earlier this year.
In a move also designed to have greater control of money leaving mainland China, government officials charged Crown employees with illegally trying to woo wealthy Chinese over to the casino operator’s properties in Australia.
Macau officials recently reported that the casino industry won $2.4 billion from gamblers in November, which marked four consecutive months of year-over-year growth.
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