Casino stocks crash as Macao considers crackdown on gambling
New Delhi (CNN Business)One of the world's top gambling hubs may be staring at a dramatic overhaul — and investors are worried.
On Tuesday, Macao announced a 45-day public consultation that observers fear will lead to tighter regulations on the lucrative gambling industry in an extension of the recent crackdown on private business by Chinese authorities.
Stocks in US casino companies that operate in Macao — the only place where gambling is legal in China — crashed in response to the news. Sands China (SCHYF) was down over 32% in Hong Kong, while Wynn Macau (WYNMF) plunged over 28%, and MGM China (MCHVF) fell more than 26%.
The government of the semi-autonomous Chinese territory was considering changes in nine areas, Macao's economic and financial secretary Lei Wai Nong told reporters. …
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