Major Macao casinos Sands China (LVS), Galaxy Entertainment (GXYEY), Melco Resorts & Entertainment (MLCO), MGM Resorts (MGM), and Wynn Resorts (WYNN) have been on the rise since September 2016, when casino revenue started rebounding. The recovery has continued into June 2017, with Macao casinos posting strong growth in their May gaming revenue.
In June 2017, Las Vegas Sands has had the highest gain of 8.5%, followed by MGM Resorts with a gain of 6.3% and Wynn Resorts with a gain of 5.4%. Melco gained 0.57%. The VanEck Vectors Gaming ETF (BJK) gained close to 3.4%, and the broader market, replicated by the SPDR S&P 500 ETF (SPY), remained flat.
As of June 27, 2017, Wynn had posted the highest YTD (year-to-date) gain of 56.8%. Melco followed, with a gain of 42.8. Las Vegas Sands gained 20.1%, and MGM Resorts gained 17%. BJK posted a gain of 21.5%, and SPY gained ~8.0%.
In this series, we’ll discuss how the gaming industry in Macao has been performing lately by analyzing key indicators such as gross gaming revenue and visitor arrivals. We’ll also take a look at how the Chinese economy could affect companies in Macao.