Good morning. Macau casino stocks saw a record sell-off on Wednesday after China announced increased oversight on the local gaming industry, though industry consultant Ben Lee says the latest moves from China shouldn’t have come as a surprise. “We saw a series of responses by the Mainland in terms of anti-gambling edicts and the blacklists. This latest move should be no surprise for people who are expecting moves by China to control the industry.”
What you need to know
- The record selloff in Macau operator stocks paints “a far more ominous picture than the reality of what has, or in many cases has not changed,” Deutsche Bank said in a note.
- Scientific Games has told interested parties in its lottery business that the segment is likely to see revenue growth of 13.6% for the next two years.
- The Preah Sihanouk region is showing signs of recovery after a period challenged by an exodus of Chinese tourists and a ban on online gambling.
On the radar
- Mobile Premier League is India’s second gaming unicorn valued at $2.3b
- MGTO announced the resumption of the local tours program from Sep 18.
- Paradise Co. has been downgraded due to prolonged sluggish performance.
- Rich Goldman expects to record a narrowed loss for FY21 of HK$21m.
What the papers say
- Macau-registered cars to get easier entry to neighboring Hengqin.
- Cambodia promotes effective controls to keep up with the gambling industry.
- VIP gaming employee has been arrested for stealing MOP100m in deposits.
Signs China is tightening its grip on the gaming industry in Macau triggered a record sell off in the big six operator stocks on Wednesday, although leading gaming industry consultant, Ben Lee, said the latest edict shouldn’t have come as such a surprise. “They had become too comfortable with the scenario that the government would not touch an industry as large as Macau’s gaming industry,” he said. “There is nothing too big for China to touch.”
- Sands China and Bank of China launch first co-branded Union Pay card.
- Evolution launches Fan Tan, a favourite Asian bead game.