NEW YORK (TheStreet) -- Shares of MGM Resorts International (MGM) were rallying, up 3.01% to $18.11 in afternoon trading Tuesday, along with other Macau-related stocks following reports that China is loosening its restrictions on local travelers visiting the world's largest gambling hub, according to Bloomberg.
Macau is the only region in China where gambling is legal.
Under new guidelines, visitors with mainland China passports can stay in the region a couple days longer. The government will allow local tourists to stay up to seven days in Macau, up from the current five day limit, Bloomberg added.
Last year, Chinese officials announced they would cut the permitted stay to five days from seven starting July 1, 2014 to deter people from leaving Macau, Reuters reported.
The government believed that visa holders were violating rules by visiting another destination while only staying in Macau, according to Reuters.
In August of 2008, China shortened the transit period for mainland visitors to seven days from 14, to discourage them from travelling elsewhere.
Las Vegas-based MGM Resorts International is a holding company with its primary business in the ownership and operation of casino resorts, which includes offering gaming, hotel, convention, dining, entertainment, retail and other resort amenities.
Separately, 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."