This appears to be the biggest reason for the drop Beijing takes aim at Macau gaming industry to cut currency flight http://www.scmp.com/news/hong-kong/...aim-macau-gaming-industry-cut-currency-flight
Some what of a rebound on Friday for the Big 4 but way off the highs. Even though the ATM news was overdone the shorts have not went away. I ran a L2 history from Friday and the shorts were still attacking WYNN, LVS, and MPEL. Unlike these 3, MGM with less exposure to Macau was not effected as much by short selling. With out some good news the trading could be in question until numbers are released at the end of the month.That's providing the numbers follow suit with YOY to the upside.
Why traders are betting on casinos Option traders chased a sharp bounce in casino operators on Friday. Casinos sold off Thursday on reports that China was restricting ATM withdrawals in Macau to curb the flow of money out of the country, but the limits turned out to be much less severe than feared. The stocks rebounded on Friday, and our systems found upside option activity in MGM Resorts, Melco Crown Entertainment, and Las Vegas Sands, which all have substantial operations on the island. MGM: 16,400 December 29.50 calls bought for $0.42 to $0.70 against open interest of 1,005 contracts. MPEL: 4,500 January 20 calls bought for $0.35 to $0.50 against open interest of 929 contracts. LVS: 3,800 Weekly 60 calls expiring on Dec. 30 were bought for $0.50 to $0.82 against open interest of 64 contracts. http://finance.yahoo.com/news/why-traders-betting-casinos-134706424.html
Mis-represented news brought buying opportunities. New ATM rules not to affect Macau’s gaming market: govt Macau’s Secretary for Economy and Finance, Lionel Leong Vai Tac (pictured), said on Sunday that the new limit per transaction for withdrawals in ATMs using mainland China bank cards would not negatively affect the city’s gaming industry. The Monetary Authority of Macao has set a limit of MOP5,000 (US$626) or HKD5,000 per transaction for withdrawals in the city’s ATMs using bank cards issued by mainland China banks. The new limit per transaction came into force on Friday. The daily withdrawal limit with the use of such cards remains at CNY10,000 (US$1,449), or at an annual withdrawal limit of CNY100,000. Read More: http://www.ggrasia.com/new-atm-rules-not-to-affect-macaus-gaming-market-govt/
Macau double-digit GGR growth likely in Dec: analysts http://www.ggrasia.com/macau-double-digit-ggr-growth-likely-in-dec-analysts/
Mass to take the lead in Macau in 2017: Spectrum http://www.ggrasia.com/mass-to-take-the-lead-in-macau-in-2017-spectrum/
Japan Legalizes Casinos, Paving Way for Investment in Resorts https://www.bloomberg.com/news/arti...-organic&utm_source=twitter&utm_medium=social
At first glance this does not look good but reading the 2nd half improvements it looks very good. Macau casino GGR falls 3 pct full-year 2016: govt Macau’s accumulated casino gross gaming revenue (GGR) for full-year 2016 fell 3.3 percent compared to the tally for 2015, according to data released on Sunday by the city’s regulator, the Gaming Inspection and Coordination Bureau. The city’s accumulated GGR for the 12 months of 2016 stood at MOP223.21 billion (US$27.95 billion), compared to MOP230.84 billion in 2015. It meant Macau has experienced three consecutive years of annual GGR decline: in 2015, GGR had fallen 34.3 percent; in 2014, it slipped 2.6 percent year-on-year. Despite 2016’s annual year-on-year GGR contraction – against a significantly diminished base of Macau GGR over the previous two years – the final five months of 2016 registered consecutive year-on-year improvements in the monthly tally of GGR. Macau’s GGR for December 2016 rose by 8.0 percent year-on-year, to nearly MOP19.82 billion. http://www.ggrasia.com/macau-casino-ggr-falls-3-pct-full-year-2016-govt/
Futures look pretty dismal right now for our markets but the Big 4 are rock'in on the Hong Kong exchange tonight led by MGM China and Melco (MPEL)
Macau VIP sector back to y-o-y growth in 4Q: JP Morgan Macau’s VIP gaming sector is likely to have posted its first year-on-year quarterly growth in almost three years in the quarter ended December 31. That is according to a Monday note from JP Morgan Securities (Asia Pacific) Ltd. Analysts DS Kim and Sean Zhuang wrote that casino VIP gross gaming revenue (GGR) in the fourth quarter of 2016 was US$3.5 billion. “We estimate VIP GGR grew by 15 percent to 16 percent quarter-on-quarter or 8 percent to 9 percent year-on-year [in the fourth quarter of 2016],” they added. Read More: http://www.ggrasia.com/macau-vip-sector-back-to-y-o-y-growth-in-4q-jp-morgan/
oops I missed this little tidbit this morning Strong start to January for Macau GGR: analysts “The casinos in Macau have enjoyed a strong start to 2017, with… [aggregate January 1 to 8]… gaming revenue coming in at MOP6.7 billion [US$838.8 million], which implies daily average GGR of MOP838 million, up 30 percent week-on-week,” said a Monday note from Japanese brokerage Nomura. http://www.ggrasia.com/strong-start-to-january-for-macau-ggr-analysts/
This should give a little horsepower to MGM, WYNN, and LVS Tourism officials report record 42.9M Las Vegas visitors in 2016 (2017 predicted to be higher) as Vegas drew a record number of visitors last year, 42.9 million people, even more than tourism officials had predicted. The numbers were part of a preliminary tally of 2016 visitor statistics compiled by the Las Vegas Convention and Visitors Authority (LVCVA) and released Tuesday. Kevin Bagger, director of research for the LVCVA, said his department had forecast that 42.5 million people would visit in 2016, 4 million fewer than the final count. This is the third consecutive year a new visitation record was set. Last year’s number was 1.5 percent higher than 2015’s. Other tourism indicators were also up. According to Bagger’s report, the city saw record convention attendance, with 6.3 million people attending conventions in 2016, 7.1 percent more than 2015. Also, while Las Vegas’ room inventory increased only slightly, the occupancy rate went up 1.4 percent in 2016 when compared to 2015. While only one new resort — The Lucky Dragon — opened last year, Bagger said the reason Las Vegas’ numbers continue to improve is that the city continually reinvests in amenities people want. “We tend to get a constant reinvestment in our infrastructure,” Bagger said. He cited the Lucky Dragon, the Julius Tower at Caesars Palace, the Topgolf attraction on Koval Road, T-Mobile Arena, Park Theater at Monte Carlo and SpeedVegas, a luxury car-driving facility in the south end of the Las Vegas Valley. The LVCVA also compiles tourism statistics for Mesquite and Laughlin. Mesquite saw 1.3 million tourists visit last year, an increase of 11.4 percent compared to 2015. Laughlin had 1.9 million visitors, an increase of 1.2 percent compared to 2015. While Bagger said 2016 will be “a hard year to beat,” he predicted that 43.2 million people will visit Las Vegas in 2017. http://lasvegassun.com/news/2017/jan/10/tourism-officials-report-record-429m-las-vegas-vis/
I was very surprised myself as Vegas and Macau are jumping. It could be the whiplash from the Trump/China trade war scenario.I do not see any other negatives.
If it's Trump related, maybe him speaking today could improve (or worsen) the near-term outlook. We'll see in less than an hour.
This might be the reason for the drop today. Macau is always biting the hand that feeds them. Debate on Macau casino staff gambling ban ongoing: DICJ Macau’s gaming regulator, the Gaming Inspection and Coordination Bureau – also known by the Portuguese acronym DICJ – is planning to “expand the scope” of an ongoing consultation on a proposal for Macau casino workers to be barred from entering casinos during non-work hours. Last year, representatives from 11 Macau casino worker groups had broadly backed a government suggestion that casino workers be barred from taking part in any gaming-related activity inside casinos during non-work hours. “We already consulted some [labour] groups, but we hope to expand the scope of the consultation on this issue,” said on Wednesday Leong Man Ion, deputy director of the casino regulator. He added that the aim was to gather a larger number of opinions on the matter from the city’s casino workers. He was speaking on the sidelines of an award presentation ceremony for a dealer uniform design contest for casino resort Grand Lisboa Palace. The latter is a property in Macau’s Cotai district being developed by casino operator SJM Holdings Ltd. Mr Leong told reporters the government had no schedule for the introduction of the potential bam. A similar ban already exists for the city’s civil servants, who usually are only authorised to gamble in casinos during the Chinese New Year holiday period. It is also common practice in the local industry for gaming operators to bar their own staff from gambling on company premises. Macau’s Social Welfare Bureau – also a unit of the Macau government – expressed last year support for the suggestion to bar Macau casino workers from entering casinos during non-work hours. Hon Wai, deputy director of the bureau, said at the time that the ban could help lower the risk of these workers developing a gambling addiction. http://www.ggrasia.com/debate-on-macau-casino-staff-gambling-ban-ongoing-dicj/
