December 2, 2015—Casino stocks are weak. Investors holding stocks in Macau casinos are not going to see an increase in their investment portfolio if the revenue and GDP are any indication. Gaming revenue has decreased 32% in November. It is the 18th consecutive month in Macau revenue. In comparison Las Vegas is down 5% in October, with weak baccarat volumes. The overall GDP for Macau is down 24%. These are current quarter 3 numbers.
In particular, Las Vegas Sands stock is down 10% in November due to weakening revenue and GDP in Macau. November gaming revenue listed for Las Vegas Sands was $2 billion, which was the lowest monthly revenue taken in 2015.
The Macau market is showing signs of stabilisation at a base level; however, VIP revenue is still down and affecting Macau the most. The government continues to tighten rules with regard to junket operators. These operators have moved on to other casinos outside of Macau.
The picture for Macau is not seeming to improve when compared to months earlier. Las Vegas Sands is also waiting for another decision in the USA. MGM Resorts is a part of a decision being made in the US. The two casinos are waiting to see if Georgia will legalise gambling. If the state decides to pass a law for gambling legalisation, it will mean $2.4 billion in annual revenue, as well as 30,000 permanent jobs for residents. Las Vegas Sands is considering starting a $1 billion casino resort in Georgia. This may improve their stock and investor interest in their stock.
Another casino in the news is Wynn Resort, which has seen a decline of 10% in November. Wynn Resort has postponed their Cotai casino opening by three months. They attribute the delay to construction, as well as uncertainty about gambling tables. However, it is also a revenue and GDP concern.