Macau Casino Stocks Plunge with VIPJunket Ops in Beijing’s Anti-Corruption Crosshairs
Macau Casino Stocks Plunge with VIPJunket Ops in Beijing’s Anti-Corruption Crosshairs
Investors folded on Macau casino shares after Suncity Group, the location’s biggest VIP junket business, reportedly warned its workers to take extra caution when moving money to your Chinese enclave where gaming is permitted.
Billionaire Steve Wynn was one of many casino magnates whom lost money on Monday, as Macau casino stocks dipped on continued uncertainty about the ongoing future of VIP junket operators. (Image: Vincent Yu/Associated Press)
Wynn Macau, traded on the Hong Kong Stock Exchange, destroyed almost five percent of its share cost regarding the news. Galaxy Entertainment was down more than three percent, and MGM China, Sands Asia, and SJM Holdings all saw their valuations dip by at least two percent.
According to Barron’s, a newspaper that is financial investors are fleeing on concerns that China’s anti-corruption campaign is soon to target VIP junket operations, for decades a critical part of drawing high-stakes players to various Chinese casinos. President Xi Jinping has been trying to stop the flow of money from the mainland to Macau, a former Portuguese territory that is today a tax haven where casinos routinely focus on the elite that is asian.
‘Investors are worried that the Suncity warning could preclude another crackdown on the industry,’ Barron’s columnist Daniel Shane had written.
Suncity Group warned employees recently to take extra precautions whenever money that is