US-based Macau casino stocks experienced a rise this week as Beijing and Washington agreed to a 90-day halt on tariff increases.
Share prices of Macau’s major casino concessionaires – Wynn Resorts, Las Vegas Sands, and MGM Resorts – climbed by approximately 8%, 7%, and 5%, respectively, as reported by Investopedia on Monday. Concurrently, the S&P 500 index rose by 3%.
Chief executive provides reassurance
Macau’s Chief Executive Sam Hou Fai offered reassurance to the Asian-facing units at a press conference on Tuesday, stating that the city would support American operators following Macau’s laws without penalty due to actions from Washington.
Sam acknowledged the evolving international geopolitical landscape and the need for economic diversification in Macau to enhance sustainable development.
The government’s “1+4” growth plan, initiated in 2023, focuses on advancing international tourism and hospitality alongside four new economic pillars.
US operators ‘unlikely’ to face expulsion
Fitch Ratings recently indicated that American operators in Macau might face challenges due to US-China tensions but highlighted their strong balance sheets and ratings headroom as mitigating factors.
Sam emphasized the welcoming environment for foreign investments in Macau, aligning with his recent policy address.
Despite the gaming industry’s significant contribution to Macau’s tax revenue, the likelihood of Wynn, Sands, and MGM losing their licenses is deemed minimal by Fitch.
