Gaming: Macau VIP More Broken Than Ever - B. Riley

November 29, 2021 7:21 AM EST
Get Alerts WYNN Hot Sheet
Price: $86.46 +1.96%

Rating Summary:
    24 Buy, 17 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 10 | Down: 5 | New: 26
Trade Now! 
Join SI Premium – FREE

Get inside Wall Street with StreetInsider Premium. Claim your 1-week free trial here.

B. Riley analyst David Bain has weighed in on the latest developments in Macau after Alvin Chau, the CEO of the largest gaming promoter Suncity, is wanted by police for a “mainland illegal gambling charge.”

Macau’s VIP gambling got another blow after the Court of Final Appeal upheld a court verdict citing Wynn Macau (NASDAQ: WYNN) and junket, Dore Entertainment, both responsible for HK$6 million owed to a VIP player.

“VIP accounted for ~32% of Macau gaming revenue versus nearly half in CY19 and the former driver of GGR before that. We see tough sledding for VIP from here, yielding a more aggressive structural shift away from VIP in Macau than most expected,” Bain said in a client note.

The analyst also discussed other challenges facing Macau gaming, such as concessions expiring in June next year and COVID sensitivity. Although Bain is bullish on Macau stocks long-term, he sees “significant” near-term issues.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Hot Comments

Related Entities

B. Riley