Wynn Resorts, Las Vegas Sands and MGM Resorts International have shown a rise in New York trading after Macau authorities released the favourable results of a public hearing on the renewal of casino licences.
The public hearings took place from 15 September to 29 October 2021 and generated positive opinions, with the respondents saying they’re OK with the current arrangements, according to data released by Sanford C. Bernstein & Co. Bernstein is a company that provides financial advice to investors and also operates as a brokerage firm.
Most participants to the hearing consider the current number of six casinos to be a good number, however, they argued that the length of the concessions should be less than 20 years.
Bernstein Analyst Vitaly Umansky wrote: “We still believe the government is wholly set on finalising the new concessions prior to the June expirations. We do not view anything in the report that raises issues.”
Respondents agreed to the increase of capital commitments in the region, as well as local ownership and management. Another proposal that was agreed upon was for the existence of a government representative in the casinos.
Most of the respondents didn’t agree that the government should have control over dividends paid by the casino operators to shareholders.
According to Umansky, the report is solely a summary of the public opinions and it doesn’t represent a final decision by local authorities.
However, after the results of the public hearing were announced, Sands rose as much as 6% to $39.38, Wynn by 5% and MGM went up by 3%. Shares of the Chinese operators, Melco Resorts, Galaxy Entertainment and SJM Holding also went up.
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