NEW YORK (TheStreet) -- Melco Crown Entertainment (MPEL) stock is slightly lower this afternoon, down by 0.16% to $19.31 on Monday, as some casino operators take a hit due to the continuing decline in revenue out of Chinas Macau gambling district.
The gaming hub, which is the only place in China where gambling is legal, reported a 37% decline in revenue for the month of May. This marks one year of consecutive monthly declines since the Chinese government began its anticorruption crackdown, Reuters reports.
Since the government's initiative began high stakes and VIP players have avoided the casinos in the Macau district.
Gambling revenue fell to 20.3 billion pactacs ($2.5 billion) from 32.4 billion patacas from the same month in the previous year.
The decline was steep in May but in-line with the 38% drop analysts were expecting, Reuters added.
Separately, TheStreet Ratings team rates MELCO CROWN ENTMT LTD as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate MELCO CROWN ENTMT LTD (MPEL) 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 reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."