Casino stocks rally following Macau gaming law announcement

US gaming shares of Macau-linked operators surged following the Macau Government’s announcement of the new gaming law proposal on Friday.

Sands China’s parent company Las Vegas Sands saw a 14.15 per cent jump, while shares of Wynn Resorts soared by 8.6 per cent.  The shares of another Las Vegas operator, MGM Resorts International, went up by 0.5 per cent.

Meanwhile Melco Resorts & Entertainment’s shares climbed 16.6 per cent.

The Macau Government announced yesterday (Friday) details of the gaming law amendment bill, setting a maximum of six concessions, which can operate for a period of up to 10 years (to be extended for 3 years under exceptional circumstances).

In a note sent to investors, JP Morgan analyst Joseph Greff said “this is a positive outcome and meaningfully reduces Macau license risk and license term risk for the Macau operators”.