Shares of several Macau gaming stocks were lower in early trading after Daiwa analyst Jamie Soo told investors that his checks uncovered that a memo was distributed to customers and key staff by “one of Macau’s largest” junket operators warning of recently heightened enforcement of anti-money laundering initiatives in both China and Macau.
The junket operator advised its customers to withdraw funds out of “underground” bank accounts, which is the first time such a dissemination has occurred to Soo’s knowledge, he informed clients. The expected further heightening of enforcement continues to be reaffirmed given this news and other events over the past six months, added Soo, who said he remains Neutral on the Macau gaming sector.
In early trading, Las Vegas Sands (LVS) slid 2.7%, MGM Resorts (MGM) was down 1.5%, Wynn Resorts (WYNN) fell nearly 4% and Melco Resorts (MLCO) dropped over 4%.
