Here’s Why Macau Casino Share Prices Are Surging

Macau remains one of the world’s top casino destinations. For months, however, tourism into the city has been sparse and gambling revenue is dropping. Interestingly, Macau’s casino share prices have begun to increase this week. Today, we’re going to look at why this is.Wynn Resorts In Macau

Casino companies have to be pleased with this development. Many have been hurting badly through 2020. Some feel that Macau may end up being a source of valuable revenue for these companies heading into 2021.

Let’s look at what’s going on here!

US Casino Companies Continue to Release Revenue Reports

Casinos around the world are still being heavily affected by the global pandemic. The US remains the hardest-hit country from this new virus and casinos here are struggling to bring in players. It’s unclear when this trend may begin to change.

In recent weeks, some of the country’s biggest casino companies have begun releasing their second-quarter revenue reports. Things are about as bleak as most analysts predicted. All of these companies saw massive drops in revenue when compared to the same quarter in 2019.

Las Vegas Sands experienced a massive 97% drop in revenue in 2020’s Q2. Over these three months, the company managed to bring in just $98 million. That represents the worst quarter in the company’s history.

Wynn Resorts also offered some insight into its second-quarter earnings. This massive casino operator saw a 95% drop in revenue. Company officials are confident thing will look significantly better through July, August, and September.

It’s been a tough year for the land-based gambling industry. Many casinos have already been forced to permanently shut down. More are likely to do so over the next six months.

More focus is beginning to shift towards Macau, where rates of tourism may be about to increase.

Macau Casino Share Prices Have Begun to Increase

As we already mentioned, tourism into Macau has been almost non-existent for months. Much of that was due to the travel restrictions that mainland china set on this territory. In the past, visitors to Macau were forced to quarantine for two weeks after returning to the mainland.

Officials in Macau have been complaining about these regulations. Many felt they made it impossible for the tourism industry here to thrive. It now appears that the government in Mainland China agrees.

Authorities in the Hong Kong and Macau tourism offices have confirmed that visitors to these cities will no longer need to quarantine after returning to the mainland. Visitors will, however, need to obtain a negative Covid-19 test and a green health code in order to return home.

It seems likely that this will help to increase tourism to Macau. As a result, many Macau casino share prices have begun to increase. Melco Resorts & Entertainment saw an increase of 5.41%. Las Vegas Sands saw a 4.07% increase. Wynn Resorts’ share prices increase by 4.14%. Lastly, MGM Resorts International saw an increase of 1.42%.

It’s great news for these companies. It may be more than a year before casinos in the US see their revenue earnings return to normal. Hope is that Macau manages to make up for some of the revenue losses experienced in the United States.

What else can US casinos do to increase their earnings?

Online Gambling is Growing More Popular in the US

Many gambling fans have been disappointed to see their local casinos either closed or with significant restrictions set in place. As we mentioned earlier, many of these venues may be forced to permanently close down. The popularity of online gambling is now growing as a result.

Many love the convenience that these sites offer. It can also be exciting to see how many different gambling options these websites provide.

Sports betting is more popular now than ever before. More than 20 states have passed laws to legalize and regulate this industry. Many more are likely to do so over the next couple of months.

The surge in online gambling is likely to continue for some time. As more states earn money from their internet gambling industries, more states are likely to begin looking into its regulation, as well. Hopefully, the land-based casino industry begins to recover soon, as well.

We’ll need to wait and see how Macau casino share prices change as the weeks go on. It will be interesting to see how quickly tourism rates jump here with China’s travel restrictions now lifted. Make sure to stay tuned for updates.

Do you plan on visiting Macau anytime soon? Let us know in the comments section below!

Now Might be the Perfect Time to Invest in Casino Companies

After months of being shut down, the US casino industry is slowly coming back to life. Several of the biggest casino-resorts in the country are scheduled to reopen this week. Some now feel that this is the perfect time to invest in casino companies.

Paper On Stocks And Shares

Stock prices have been fluctuating greatly over the past couple of months. There now seems to be a real investment opportunity in the gambling industry. Today, we’re going to look at what analysts predict to happen over the next few weeks.

Las Vegas Casino Industry is About to Reopen

The US has the biggest and most successful casino industry in the world. Many states around the country allow casino gambling. Some have legalized commercial casino gambling while others only permit Native American-run gaming venues to operate.

In March, however, this industry completely shut down. Every state ordered their casinos to close to the public. Health experts warned that these casinos were easy places for the new coronavirus to quickly spread.

These regulations hurt some parts of the country more than others. Perhaps no city took quite as big of an economic hit as Las Vegas. Closing the casinos here resulted in hundreds of thousands of job losses and an unprecedented amount of lost revenue.

Some of the biggest casino companies in the world are based in Las Vegas. All of them have seen their share prices plummet over the past three months. Fortunately, many of the casinos in this city are being allowed to reopen to the public on June 4th.

As a result, some of these company’s stocks are beginning to surge. Some analysts believe Las Vegas will see a massive influx in gamblers looking for an escape from the restrictions in their own states. Some now believe this is the perfect time to invest in casino companies here.

Here’s Why Some Analysts Are Recommending You Invest in Casino Companies

It might seem crazy to think about investing in the land-based gaming industry right now. Even in states that have reopened casinos, the revenue being earned is a fraction of what was coming in a few months ago. There’s no denying the fact that casino stock prices are surging right now, though.

Caesars Entertainment, MGM Resorts International, and Wynn Resorts have seen their share prices surge by more than 140% since March 18th. Penn National Gaming has risen by an astounding 780% from its lowest point in March. Ari Wald, the head of technical analysis at Oppenheimer, spoke with CNBC about the future of these stocks earlier this week.

“Typically at market turning points you’re going to see investors embrace the most beaten-up laggards. For the S&P casinos industry, we are seeing that stability over the last eight weeks. I think you test the underside of that 200-day,” he said. “It’s really just a beta trade. Yes, they overshot to the downside, getting some relief to the upside, but there’s some longer-term concerns. We think instead the premium is going to be on high-growth companies in this low-yielding recovery.”

Many feel that Macau will help to significantly raise these company’s stock prices. China has been quick to recover economically when compared to other countries. Chinese nationals are likely to begin gambling in Macau, where a number of major US-owned casino-resorts are located.

The opening of Las Vegas casinos will help things, as well. The real question is now about how many tourists will begin flocking to this city. We’ll get a much better idea over the next seven days when the casinos here open back up.

Sports Betting Continues to Grow More Popular

Since May of 2018, every state in the country has been given permission to set their own laws on sports gambling. As of today, more than 20 states have now legalized this form of gambling. It’s proven to be incredibly popular.

Prior to the global pandemic, sports betting was growing every single month. The shutdown of major sports leagues brought a stop to this. As more leagues begin to resume their operations, much of this revenue has begun to flow back in.

Interestingly, more states are becoming interested in legalizing sports betting. That includes California, which feels legalizing this industry will help the state recover economically. Lawmakers are now discussing the matter with Native American tribes in the state that want to ensure they receive revenue from the legal sports betting options in the state.

Sports betting has never been more popular than it is right now. This is another reason why so many are advising to invest in casino companies right now. Expect more of these casino companies to focus on their sports gambling options.

This is a pivotal time for the US gambling industry. We may be in for some major changes over the next few weeks.

Stay tuned for more casino news!