Gaming in Macau May Be Harmed by China's New Visa, Credit Policies; Casino Stocks Under Pressure (MGM) (LVS) (WYNN)

Stocks in the Casino & Gaming sector are under pressure Monday as investors are likely responding to reports out of China's Macau Daily News which suggest the nation's new visa and credit policies may soon begin to weigh on sales.

The concerning headlines were highlighted by a Wells Fargo analyst earlier. The firm's Cameron McKnight cited:

• meaningful impact that visa restrictions had on visitation and gaming revenues in 2008/9;
  
• general lack of cohesive disclosure around Chinese visa policies, which increases uncertainty;
  
• investors' extreme sensitivity to headlines around "visa restrictions"; and
  
• China UnionPay cards could facilitate a meaningful amount of VIP and mas market play.

McKnight maintains a cautious stance on the Macau gaming market.

Around the sector, shares of MGM (NYSE: MGM) are down 4.6 percent, Las Vegas Sands (NYSE: LVS) shares are down 4.2 percent, and Wynn (Nasdaq: WYNN) shares are down 1.4 percent.

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