Billions blown as Macau casino investors fold amid gambling review
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Macau casino operators lost about $18 billion in market value. The government is considering a new regulatory overhaul. Macau's lucrative casino licences are up for rebidding next year. Some analysts have downgraded their view of near-term prospects for casino companies in Maca. J.P. Morgan is downgrading to neutral or underweight all Macao gaming names from overweight. It is because of the tougher scrutiny on capital management and daily operations ahead of licence renewals. They must all rebid for licences when current permits expire in June 2022.
The government is consulting on the future of Macau's casino licences. It wants to increase voting shares in gaming concessionaires for permanent residents and better regulation. Some investors fear an edge for domestic players over U.S.-based casino operators. Macaus has been clamping down on illicit capital flows from mainland China and targeting underground lending and illegal cash transfers. Macao has struggled with a dearth of travellers because of coronavirus curbs since the start of 2020. The gambling revenues have picked up in recent months, but they remain less than half of 2019 monthly figures.
