NEW YORK (TheStreet) --Shares of Las Vegas Sands Corp. (LVS) are down by 1.63% to $50 in late afternoon trading on Monday, as some casino operator stocks are driven lower by the decline in revenue out of China's Macau gaming region.
In May Macau's revenue dropped by 37%, in line with what analysts were expecting. However, this marked a full year of consecutive monthly declines out of the only area in China where gambling is legal.
Revenue in Macau began to slump when the Chinese government started to crackdown on corruption out of the district. High stakes and VIP players started avoiding the tables in Macau when the government initiative commenced.
Macau's gambling revenue fell to 20.3 billion pactacs ($2.5 billion) from 32.4 billion patacas from the same month in the previous year, Reuters reports.
Another headwind for Macau includes a smoking ban in the casinos.
There are over 300 million smokers in China and over a million people in the country die from smoking related illnesses each year, BBC.com reports.
Separately, TheStreet Ratings team rates LAS VEGAS SANDS CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate LAS VEGAS SANDS CORP (LVS) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income."