NEW YORK (TheStreet) -- Shares of Las Vegas Sands (LVS) are down by 4% to $52.80 in mid-morning trading on Monday, following an analyst note from Stern Agee stating it believes the gaming hub in China's Macau district is "off to a slow start" in June.
Las Vegas Sands is a Las Vegas, NV.-based casino operator with facilities in the U.S. and Asia.
The Macau district, the only region in China where gambling is legal, has been suffering a year of declining revenue since the government began an anti-corruption crackdown on the area. The government initiative has kept high stakes and VIP players away from the tables.
"According to our channel checks, Macau table-only gross gaming revenue ("GGR") is MOP3.3 billion ($410 million) from June 1 to June 7," Sterne Agee said. MOP represents the currency in Macau.
The firm's June GGR growth results indicate a -46% year-over-year monthly result or MOP14.6 billion ($1.8 billion).
"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," Sterne Agee continued.
Sterne Agee believes the Macau market will continue to generate sequentially "less bad" results from a growth bottom in February. However, the firm is expecting near-term second quarter 2015 consensus estimate downward revisions.
The firm cited sources that state it is likely more VIP rooms will be downsized or closed in the near to intermediate future on demand issues.