Chinese regulators shut down casinos to curb COVID outbreak, gaming stocks slide (NYSE:LVS)

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In a familiar refrain, shares of Macau-linked casinos fell sharply on Monday amid reports that regulators are stepping up action to curb rising COVID cases.

According to official figures, cases jumped to 1,526 in the region since mid-June. A Johns Hopkins case tracker says the weekly average number of cases jumped in the mid-30s to start July, which is the highest on record for the special administrative region.

Given this unprecedented level of cases, state regulators have moved to close all casinos for the first time since the early stages of the pandemic. The shutdown of all gaming operations is another signal that Zero COVID policies will not be easily abandoned by Chinese authorities.

Las Vegas Sands (NYSE: LVS) tear down 5.32% in premarket trading on Monday, while Wynn Resorts (NASDAQ:WYNN) has slipped 5.67%. Meanwhile, Melco Resorts & Entertainment Limited (NASDAQ: MLCO) fall 4.64% during the first session.

Other Macau-specific operators affected are: Wynn Macau (OTCPK:WYNMF), Sands China (OTCPK:SCHYY), MGM China (OTCPK:MCHVF), Galaxy Entertainment (OTCPK:GXYEF), SJM Holdings (OTCPK:SJMHF), Studio International City (MSC).

See Researching Alpha Quant Ratings in the Casino and Gaming Industry.

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