Casino stocks drop on disappointing Macau revenue 

Billy H.C. Kwok | Bloomberg | Getty Images

People use mobile devices to take photographs of a fountain outside the Wynn Macau casino resort, operated by Wynn Resorts Ltd., in Macau, China, on Tuesday, Jan. 30, 2018.

Casino stocks fell sharply on Monday on weaker-than-expected gaming revenue data out of Macau.

Macau’s Gaming Inspection and Coordination Bureau said gaming revenue for June increased by 12.5 percent to $2.78 billion on a year-over-year basis. Analysts polled by Reuters expected revenue to jump between 17 and 21 percent for June.

Shares of Wynn Resorts closed down 7.89 percent at $154.14 per share, its worst day since Jan. 29 when it lost 9.32 percent. Las Vegas Sands and MGM Resorts International also dropped 6.67 percent at $71.27 and 3 percent at $28.16, respectively.

Wynn and Las Vegas Sands both receive more than 50 percent of their revenue from the autonomous region nicknamed the “Las Vegas of Asia,” while MGM makes about 21 percent of its revenue from Macau.

June marked the 23rd month of consecutive gaming revenue gains for Macau, however, after a slowdown in economic growth and a corruption probe that started in 2014, sent revenue down to a five-year low.

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