John123
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John123 in Stocks for Real Men,

WYNN plunged 6,4% after Steve Wynn messed up with Chinese authorities

Wynn Resorts (WYNN) shares closed down 6.4% on Monday after Bloomberg reported that Macau's government on Sunday responded to criticism from casino magnate Steve Wynn, of Wynn Resorts, and said that casino operators must comply with its regulations.

According to the report, Macau summoned casino representatives on Sunday and said that it "has "no plan to make any changes lightly" and demands "clear understanding and full compliance" with regulations from the industry.

Wynn on Thursday criticized Macau for limits on gaming tables and delays in being informed how many tables would be allocated for a new resort.

WYNN gets 70% of revenue from its Chinese subsidiary Wynn Macau and only 30% from their business in Las Vegas. So it was very stupid for Steve to publicly criticize Chinese authorities. I think now WYNN will be the last in queue to get allocations for new tables and expand business in Macau. 

Imho, this stock will underperform the gaming sector. If you are looking for shorts in casino stocks, WYNN should be definitely on your radar.