Junket Crackdown in Macao Pressures Gaming Stocks (MGM) (LVS) (MPEL)
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Macao is about to become a safer, cleaner region of China. Unfortunately, that may not translate well into revenue for casino operators.
According to data out today, police in Macao have detained three people connected with the largest junket operators in the region. Junkets operators act like middlemen between VIPs and casino operators. They provide funding for VIP patrons, being familiar with their clients credit history. The operators also virtually guarantee a steady revenue stream for casinos in Macao.
One analyst in Hong Kong said new government officials in the Special Administrative Region are cracking down on China's underground banking system and have plans to implement anti-corruption measures.
Melco Crown Entertainment Ltd. (Nasdaq: MPEL), Las Vegas Sands (NYSE: LVS), Wynn Resorts (Nasdaq: WYNN), and MGM Int'l (NYSE: MGM)
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According to data out today, police in Macao have detained three people connected with the largest junket operators in the region. Junkets operators act like middlemen between VIPs and casino operators. They provide funding for VIP patrons, being familiar with their clients credit history. The operators also virtually guarantee a steady revenue stream for casinos in Macao.
One analyst in Hong Kong said new government officials in the Special Administrative Region are cracking down on China's underground banking system and have plans to implement anti-corruption measures.
Melco Crown Entertainment Ltd. (Nasdaq: MPEL), Las Vegas Sands (NYSE: LVS), Wynn Resorts (Nasdaq: WYNN), and MGM Int'l (NYSE: MGM)
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