NEW YORK (TheStreet) -- MGM Resorts International (MGM) shares down 4.66% to $19.33 in morning trading on Monday following an analyst note from Stern Agee suggesting that early returns from the Macau gaming region show that revenue is once again falling in June for a thirteenth consecutive month of declines.
The Macau gaming region in China is the only region in China where the country's 1.5 billion citizens can legally gamble. However, after strong early returns following its debut as a gambling hub in 2006, the region has seen a decline in activity amid a Chinese government's crackdown on corruption.
"Our June GGR (gross gaming revenue) growth forecast range of between -33% and -38% YoY remains unchanged," analyst David Bain wrote. "Given abnormal market share and other checks, we believe hold negatively impacted early June results. Still, results are disappointing especially given a two week proximity to the opening of Galaxy's Phase 2."
Revenue in the region fell 37% in May, a steep drop that was still ahead of analysts' 38% decline expectations.
The Macau Gaming Inspection and Coordination Bureau reported that a cigarette ban in casinos as well as currency headwinds are also playing a part in the region's contraction.
The analyst note affected the entire gaming sector today as Las Vegas Sands (LVS) shares are down 3.9% to $52.85, while Wynn Resorts (WYNN) shares are declining 5.16% to $103.51.
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: