NEW YORK (TheStreet) --Shares of MGM Resorts International (MGM) are plunging, down 3.61% to $18.17 on extremely heavy volume in afternoon trading on Wednesday, as Macau-related casino stocks are sinking on the crackdown of illegal activities in the Macau gambling district by the Chinese government, Bloomberg reports.
China will start cracking down on illicit money channeled through Macau, the only region in the country where casinos are legal, according to Bloomberg.
Macau has curbed money flows to the world's largest gambling hub by restricting the use of UnionPay's debit cards at casinos, as well as hand-held card swipers within resorts due to concerns over illegal funds being taken out of the mainland into Macau, Bloomberg noted.
About 47.33 million shares of MGM Resorts International traded hands as of 3:44 p.m., compared to its average volume of about 8.53 million shares a day.
Separately, TheStreet Ratings team rates MGM RESORTS INTERNATIONAL as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate MGM RESORTS INTERNATIONAL (MGM) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, generally higher debt management risk and weak operating cash flow."