(Bloomberg) Macau’s big companies in the gambling sector lost a record $18.4 billion of combined market value following China’s revision of gambling laws.
The new regulations require more sector’s stake for the local shareholders besides having a government representative to oversee casinos’ operations.
Bloomberg’s Intelligence Index covering the six largest casino operators dropped 23%. Wynn Macau Ltd, Sands China, and Galaxy Entertainment Group plunged 34%, 33%, and 20% respectively.
The sector saw a drop in the Chinese dollar bond market with a note from Wynn Macau due in 2028 dropping by 9 cents.
Officials in Macau have said that they will start a 45-day public consultation on September 15 to deliberate on the new directive.
The sector crackdown has come at a time Macau is recovering from the effect of Covid-19, with gaming revenue in August dropping 82% compared to the pre-pandemic period.
1128: HKG is down -4.69%, 1928: HKG is down -7.96%, 0027: HKG is down -0.13%.
