Macau casino operators experience aggregated share price slump
The six-strong club of Hong Kong-listed casino operators in Macau reportedly saw the aggregated value of their shares drop by almost $3.5 billion over the weekend as investors exercised caution regarding the future of the once booming sector.
According to a report from Inside Asian Gaming, the dip in the casino operators’ share prices began on Friday afternoon with their combined market cap now standing some 6.3% lower at approximately $51.6 billion. Although the reasons for this sudden depreciation remain unclear, the source speculated that it may be down to unease over some of the provisions contained within Macau’s under-consideration draft gaming bill.
Ponderous provisions:
Inside Asian Gaming reported that this piece of legislation had a successful first reading before the 33-member Legislative Assembly in January and, as currently written, could oblige the six licensees to bring more non-gaming elements to their facilities and follow an even stricter set of anti-corruption and national security rules. Officially known as the Amendment to Law Number 16/2001, the new raft of casino rules, which are to regulate the local sector for the next decade, is currently being subjected to behind-closed-door deliberations and may moreover compel every one of the operators to re-apply for their lucrative casino concessions.