NEW YORK (TheStreet) -- MGM Resorts International (MGM) shares are down 2.18% to $19.61 in afternoon trading on Monday as the Macau gaming region in China reported its twelfth consecutive month of revenue declines.
Revenue in the only licensed and legal gambling oasis in China was down 37% year over year in May to $2.5 billion from $4.7 billion a year ago.
The fall in revenue was in line with analysts expectations of a 38% decline for the month.
The consistent decline in revenue is a result of wealthy gamblers in the country steering clear of the region amid a Chinese government statewide crackdown on corruption.
The Macau Gaming Inspection and Coordination Bureau also reported that a cigarette ban in casinos as well as currency headwinds are also playing a part in the region's contraction.
The falling revenue affected the entire gaming sector today as Las Vegas Sands (LVS) shares are down 1.8% to $49.92, while Wynn Resorts (WYNN) shares are declining 1.96% to $98.71.
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 growth in earnings per share, increase in net income and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself."