Macau casino stocks soar as June gaming revenue beats expectations

Investing.com -- Shares of major casino operators with exposure to Macau surged on Tuesday after the Chinese gambling hub reported a 19% YoY increase in June gaming revenue, significantly exceeding analyst expectations.

Melco Resorts&Entertainment (NASDAQ: MLCO) stock jumped 7%, leading gains among casino stocks with Macau operations. Las Vegas Sands (NYSE: LVS) rose 3.6%, Wynn Resorts (NASDAQ: WYNN) gained 3.3%, and MGM Resorts International (NYSE: MGM) edged up 0.4%.

According to data released by Macau’s Gaming Inspection and Coordination Bureau, gross gaming revenue reached 21.1 billion patacas ($2.6 billion) in June, surpassing the median analyst estimate of a 9.4% increase. The strong performance represents a recovery to 88% of pre-pandemic levels seen in 2019.

The robust revenue was boosted by a series of concerts by Cantopop icon Jacky Cheung, which began in mid-June and will continue into early July. Citigroup (NYSE: C) analyst George Choi noted that the first night of Cheung’s performances saw a 16% increase in premium players compared to last year, while the average wager per high-roller grew by 36%.

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