Macau Casino Stocks Rebound After Dramatic Plunge

Last week, casino owners with interests in Macau faced massive losses due to fears of a Chinese government crackdown. Almost $20 million was wiped off the stocks in less than 24 hours, representing a drop of 26% total value.

Investors were spooked by the announcement that government representatives would be taking up positions within each casino to oversee the day-to-day running. This development is concerning for businesses in the region, as it introduces an unprecedented level of government oversight.

However, just a week later, it appears that fears may have been overstated. Four consultation sessions are still scheduled for the end of September and throughout October, where the exact changes will be clarified. All gaming licenses in Macau are up for renewal next year, and rumors suggest that the current 20-year period may be shortened significantly. If this happens, Macau casino stocks will likely face another hit, as every casino in Macau will be constantly in fear of losing permission to operate in the region at almost a moment’s notice.