Macau Gaming Revenue Soars Most Since 2014; Casino Stocks Rally, Even This One

Headlines that say Stocks, Finance, Markets, Business and World. Credit: Shutterstock photo

Stronger-than-expected gaming sales gains in Macau last month gave a modest lift to shares of big casino operators like Las Vegas Sands ( LVS ), Melco Resorts & Entertainment ( MLCO ) and Wynn Resorts ( WYNN ), whose stock was sent reeling last week following allegations of sexual misconduct against CEO Steve Wynn.

[ibd-display-video id=3119741 width=50 float=left autostart=true] Gaming revenue in the region - the world's biggest gambling hub - surged 36.4% in January. The results were well above Consensus Metrix expectations for a 24.1% increase.

The numbers also marked the best year-over-year gaming revenue gain since 2014, when a regulatory crackdown scared away VIPs and caused a sales slump that lasted through much of 2016.

Wynn Resorts rallied 2.9% in the stock market today , while Las Vegas Sands and Melco rose 0.9%. MGM Resorts International ( MGM ), which has properties in Macau but dominates the Las Vegas Strip, ticked 1% higher.

Wynn Resorts, which reported fourth-quarter earnings last week , said sales for the period got a lift from Macau properties like Wynn Palace and Wynn Macau. Las Vegas Sands, which also reported last week , said Macau had "continued its robust recovery" and cited growth in mass gaming.

However, scrutiny of Wynn Resorts has intensified since a Wall Street Journal report detailed allegations, among others, from a former manicurist and a massage practitioner who said Wynn asked or pressured them to perform sex acts on him.

Macau's gaming regulator told Reuters this week it had met with Wynn Macau executives on Monday to "understand the situation." Wynn Resorts gets a majority of its revenue from the area.

Regulators from Massachusetts and Nevada were also examining the situation, raising questions about the prospects for a new Wynn Resorts casino in Boston. The company is also seeking a license for a property in Japan.

Steve Wynn has resigned from his role as the Republican National Committee's finance chairman since the Journal's report. But he said the notion that he "ever assaulted any woman is preposterous." Wynn Resorts' board of directors has also formed a committee to investigate Steve Wynn's alleged behavior.


Could Wynn Resorts Be Sold In Wake Of CEO's Sexual-Misconduct Allegations?

How An NFL Team, A Highway And Towels Benefit MGM Resorts

NBA Backs Nationwide Sports Betting - For This Price

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.