Macau Casino Shares Rise as Analysts Cheer Re-Licensing Report

December 24, 2021 Crime & Legal

Wynn Resorts Ltd., Las Vegas Sands Corp. and MGM Resorts International rose in New York trading after authorities in Macau released favorable results from public hearings on the renewal of casino licenses in the world’s largest gambling market.

The public comment period, which ran from Sept. 15 to Oct. 29, produced opinions largely as expected, with the respondents mostly OK with the current arrangements, according to a Thursday summary of the findings by Sanford C. Bernstein & Co.

Most participants said the current number of six casino licensees was a good number while the length of their concessions should be less than 20 years, Bernstein analyst Vitaly Umansky wrote.

The report boosts the likelihood that the current operators will get their concessions renewed by the June 2022 expiration of the current licenses without a major rewriting of the terms.

“We still believe the government is wholly set on finalizing the new concessions prior the June expirations,” Umansky said. “We do not view anything in the report that raises issues.”