Gambling Stocks Tumble as Macau Flags More Government Scrutiny
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Casino stocks slid in the U.S. after Macau laid plans to step up scrutiny of operators and increase local ownership, signaling tighter control over the world’s largest gambling hub amid Beijing’s efforts to clamp down on money laundering and currency outflows.
The government aims to increase “direct supervising” of gambling companies to better monitor their operations, Macau Secretary for Economy and Finance Lei Wai Nong told reporters late Tuesday, without elaborating on how the proposed changes would be enacted. Officials suggested raising the shareholdings of local directors in gambling companies from the currently required minimum of 10%, according to a public consultation paper on the proposal.
