CASINO

Sands China stock plunges on Macau move to increase casino scrutiny

TAGs: Galaxy Entertainment Group, Macau, sands china

sands-china-falls-macau-increase-scrutinyIs the party over in Macau? Sands China investors certainly think so. The stock dropped 7.4% — its biggest single-day drop in a year – after the Chinese news agency Xinhua reported that the government intends to rein in some of Macau’s free-wheeling ways. Galaxy Entertainment Group shares also took a hit, dropping 6.9% on the day.

According to Xinhua, Macau’s political minders intend to restrict the number of new casinos, table games and slots. Perhaps more worrying, the territory’s gaming regulators also plan to audit casino’s financial records. The government will also create a database of all junket operators, including their staff, to “strengthen inspection of gaming promoters” and “facilitate procedures for registration and supervision” of same. But for God’s sake, just don’t stop the skies from raining money…

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