Actionable news
All posts from Actionable news
Actionable news in CZR: Caesars Entertainment Corporation,

Gambling Stock Roundup: Nevada August Revenues Fall, Macau Remains in Focus

The last week was all about the top two gambling destinations, Macau and Las Vegas. After being repeatedly disappointed with Macau gambling revenues, casino investors were pinning their hopes on another top gambling destination, Las Vegas. However, their hopes dashed when Nevada gaming revenues declined for the third consecutive month in August.

Meanwhile, gaming revenues in Macau fell 33% marking the 16th consecutive monthly decline and the thirteenth consecutive double-digit decline. In fact, we would like to remind investors that September has been bad for casino operators like Wynn Resorts Ltd. WYNN, Las Vegas Sands Corp. LVS, MGM Resorts International MGM, and Melco Crown Entertainment Limited MPEL as a result of a series of negative events. While on the one hand, Neptune Group, a junket operator’s shareholder, reportedly faced money laundering charges, on the other, authorities were found investigating the reported theft at another junket group, Dore Entertainment, which operates at Wynn Resorts’ Wynn Macau casino.

Meanwhile, the news that Neptune Group might cut back on its business and lower its operations in the region if the situation in the gambling industry does not improve came as a big blow for the casino operators. In fact, Fitch Ratings lowered its Macau gaming revenue forecasts for 2015 in the third week of September owing to some of these issues. (Read More: Casino Stocks Fall as Fitch Cuts 2015 Macau Revenue View). However, the declaration from the Chinese government that it is considering measures to boost Macau’s economy came as a relief for these casino operators.

In other developments, Churchill Downs Inc. CHDN and Full House Resorts Inc. FLL expanded their portfolio last week. While Churchill Downs completed the acquisition of 25% stake in Saratoga Harness Racing, Inc.’s Saratoga Casino Holdings, LLC; Full House Resort announced that it intends to acquire operating assets of Bronco Billy’s Casino and Hotel in Cripple Creek, CO. (Read earlier development: Gambling Stock Round Up for Sep 21, 2015).

Recap of the Week’s Important Stories:

1. Gross gaming revenues in Macau plunged 33% to 17.1 billion patacas or $2.15 billion for the month of September per Gaming Inspection and Coordination Bureau. The decline was hardly a surprise and came in line with analysts’ expectations. The current decline marks the 16thconsecutive monthly decline and the thirteenth consecutive double-digit decline. The...