Tags: Analyst | Rollers | Macau | Casinos

Analyst Sees Fewer High Rollers in Macau Casinos

Tuesday, 15 Apr 2014 05:41 PM

Shares of Wynn Resorts Ltd. fell 3.6 percent Tuesday after an analyst said less borrowing in China may lead to a drop in betting by high rollers in Macau, the casino company’s biggest market.

Wynn, based in Las Vegas, slid to $202.82 at the close in New York after tumbling 7.5 percent intraday. Other U.S. casino companies with operations in Macau also dropped.

Credit growth is a leading indicator of so-called VIP betting in Macau casinos by six to 12 months, according to Cameron McKnight, a Wells Fargo & Co. analyst in New York. March data released Tuesday showed total new credit in China shrinking 19 percent from a year earlier. Wynn generated 72 percent of its 2013 revenue in Macau.

“Bottom line, credit growth hasn’t yet bottomed, and we could see VIP growth meaningfully decelerate over the next six months,” McKnight said.

McKnight forecasts a slowdown in betting by high rollers this quarter. He forecasts a 3 percent gain in the first half of 2014 compared with 12.5 percent in the first quarter.

Shares of Las Vegas Sands Corp. retreated 2 percent to $73.18, and MGM Resorts International was down 0.9 percent to $23.46. U.S. listed shares of Hong Kong-based Melco Crown Entertainment Ltd. declined 2.4 percent to $34.14.

© Copyright 2017 Bloomberg News. All rights reserved.

   
1Like our page
2Share
InvestingAnalysis
Shares of Wynn Resorts Ltd. fell 3.6 percent Tuesday after an analyst said less borrowing in China may lead to a drop in betting by high rollers in Macau, the casino company's biggest market.
Analyst, Rollers, Macau, Casinos
210
2014-41-15
Tuesday, 15 Apr 2014 05:41 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved