Casino companies with operations in Macau saw their shares plummet in Wednesday morning trading.
Though some have rebounded slightly since dipping, share prices are still largely down from yesterday.
Las Vegas Sands Corp has taken a 9.75% hit, while its subsidiary Sands China Ltd has seen a 32.51% drop, taking their share prices to $38.71 and $2.16 respectively.
Likewise, Wynn Resorts’ share price has suffered a 10.85% drop to $92.25 with Wynn Macau taking a 28.97% hit, its share price currently standing at $0.82.
This comes off the back of regulators looking to introduce big changes to the city’s gambling industry, as well as concerns about a resurgent Covid-19 outbreak.
Coronavirus cases are on the rise in China’s south-eastern Fujian province, sparking fears of a return to travel restrictions and lockdown, though tighter government regulations have investors more worried.
Their apprehensions are primarily related to licensing following the latest announcement from Macau’s Government.
The city’s Secretary for Economy and Finance, Lei Wai Nong, confirmed its review of the current legal framework.
Lei, while holding a press conference, stated that Macau is striving for the “healthy and sustainable development” of the casino industry which, according to analysts, will focus on improvements to regulatory systems.
Macau’s six big casino operators are set to see their licences expire in July 2022, and there is little chance of additional concessions, according to industry analysts.
Investment bank JPMorgan downgraded Macau's six major operators to sell or neutral ratings, citing a lack of clarity on how stricter regulations might affect casinos.