(Bloomberg) Bloomberg’s gauge of shares of casino operators showed a jump of up to 4.8% on Friday, as authorities in Macau were reportedly looking to renew licenses.
Various stocks in Hong Kong and New York rose, with Sands China Ltd and Wynn Macau Ltd up more than 6%. New York’s Wynn Resorts Ltd, Las Vegas Sands Corp., and MGM Resorts International all gained.
The jump in casino stocks occurred after public hearings between September 15 and October 29 that paved the way for the renewal of the licenses in Macau, the largest gambling market in the world.
Public hearing participants okayed the six casino licenses, with the length of concessions agreed at less than 20 years.
Bernstein analyst Vitaly Umansky says the reports increase the chances that the current operators will have their concessions renewed next year in June when existing licenses expire.
Participants agreed on a raise of capital commitments, including allowing greater local management and ownership. Government representatives are also to be included in the casinos, but the idea of state control over dividends was rejected.
The summary of public views offers a revival of Macau, whose operations were shuttered by the Covid-19 pandemic. Authorities are still to make a final decision.
1928 is up +4.73%, 1128 is up +8.05%, GS is up +3.51%, LVS is up +4.21%, MGM is up +1.02%.
