Shares of casino companies, such as Wynn Resorts (WYNN) - Get Free Report, Las Vegas Sands (LVS) - Get Free Report and MGM Resorts International (MGM) - Get Free Report, rose after the Chinese government said it would loosen travel restrictions on people returning to the mainland from the gambling haven of Macau.
Casino stocks have fallen down the tubes since March amid closures and limited reopenings resulting from the coronavirus pandemic.
China’s Guangdong province said Monday that it was lifting its 14-day quarantine policy on all visitors returning from Macau, effective Wednesday.
That “could be the start of a rebound for Macau gaming operators,” writes Todd Shriber of Casino.org.
“Guangdong is the nearest province to Macau and serves as a major thoroughfare for mainland gamblers looking to enter the gaming hub. In 2019, the province accounted for 45% of the visits to Macau.”
Shriber explains that “since border restrictions went into place at the hands of the pandemic earlier this year, analysts widely viewed the reopening of travel between Guangdong and Macau as essential to the latter’s recovery hopes.”
In other recent casino news, Eldorado Resorts ERI said Friday that the Indiana Gaming Commission approved its $17.3 billion acquisition of peer casino titan Caesars Entertainment CZR. The deal would create the world’s largest casino entity.
Last Thursday it garnered the nod from Nevada casino regulators. And the Federal Trade Commission approved the takeover June 26. Now the transaction needs only clearance from New Jersey.
Wynn shares recently traded at $84.13, up 13%; Las Vegas Sands at $49.58, up 8.4%; and MGM shares at $17.16, up nearly 6%.