China Smoking Ban Leads to Selloff in Gaming Stocks (LVS) (WYNN) (MGM)
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Price: $45.88 -8.66%
Rating Summary:
27 Buy, 12 Hold, 0 Sell
Rating Trend: Up
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
Rating Summary:
27 Buy, 12 Hold, 0 Sell
Rating Trend: Up
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
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Investors following U.S. listed Macau gaming stock have noticed a decline of 5 to 10 percent in the last week. This decline appears to be related to a smoking restriction set to go into place on Macau floors on January 1st, according to analyst at Nomura. The restriction limits indoor smoking on half the gaming floor.
"The reason for the concern is that historically, in the U.S., states that ban smoking see an average 20% decline in gaming revenues," wrote analyst Harry C. Curtis.
Since this is not an outright smoking ban in Macau and since there are few convenient alternatives for players, the revenue impact on Macau gaming should be much lower, thinks Curtis.
Nomura has Buy rating in Las Vegas Sands (NYSE: LVS), Wynn Resorts (Nasdaq: WYNN), and MGM Resorts International (NYSE: MGM)
"The reason for the concern is that historically, in the U.S., states that ban smoking see an average 20% decline in gaming revenues," wrote analyst Harry C. Curtis.
Since this is not an outright smoking ban in Macau and since there are few convenient alternatives for players, the revenue impact on Macau gaming should be much lower, thinks Curtis.
Nomura has Buy rating in Las Vegas Sands (NYSE: LVS), Wynn Resorts (Nasdaq: WYNN), and MGM Resorts International (NYSE: MGM)
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