Shares of the gambling companies with exposure to Macao jumped on Monday as China eased some of its travel restrictions.
The biggest news is that Guangdong Province in China, which neighbours Macao, is easing a quarantine requirement for visitors coming from Macao.
Previously, people coming from Macao into Guangdong had to quarantine for 14 days, which effectively cut off travel from a key region for the industry. But that quarantine requirement will be lifted on Wednesday, potentially leading to a partial recovery in Macao.
Macao's gambling market may take a while to return to any level of normal, but even a slight increase in visitors would be welcome news for resorts. Macao's gambling revenue has fallen over 90% year over year in the last three months and is down 77.4% overall this year.
Shares of Wynn Resorts (NASDAQ: WYNN) jumped as much as 12.2%, Las Vegas Sands (NYSE: LVS) was up 9.6%, and Melco Resorts (NASDAQ: MLCO) rose as much as 17.9%. Shares of the three stocks were up 12.1%, 7.6%, and 17.4% respectively at 12:45 p.m. EDT.
Investors are looking for any sign that the gambling industry will return soon, and for Macao, there seems to be a light at the end of the tunnel. At the same time, U.S. gambling operations seem to be in danger again now that COVID-19 cases are rising across the country.
No Copyright infringement intended. Video/Photo Unknown Direct for credits/issue or text us +57 3606412 ... | Respect to Photographers & Influencers
