Casinos news

Macau Postpones Issuing Casino License to Potential Operators

On April 24th, 2008, the shares of the casino operators on Macau grow after the leader of the former colony said that they will place a moratorium on issuing new casino licenses in the colony. Mr. Edmund Ho told casino legislators that no casino licenses or concessions will be issued in the near future. Officials also will not give permission if any of Macau's twenty-eight casinos will request for additional casino table games or slot machines. It is very good news for gaming companies that already have established a presence in Macau.

The stocks of Las Vegas Sands Corporation improved $5.96 or 9.2%, to $71.00 after day trading. The shares of MGM Mirage improved $1.67 or 3.4% to $50.73 dollars, while the stocks of Wynn Resorts improved $7.10 or 7.4% to $102.64. Wynn Resorts manages Wynn Macau while the Las Vegas Sands Corporation manages Sands Macau and Venetian Macau. The MGM Mirage Incorporated opened the MGM Grand Macau facility on 2007.

Lawrence Klatzkin from Jefferies and Company said that Macau Leader Edmund Ho's statement were not specific and still needs to be verified. The news may keep Harrah's Entertainment Incorporated, the world's biggest casino organization from getting a casino license in Macau. It may also halt Harrah's plans to rezone a golf course they have bought from a subsidiary. Harrah's officials said that they will still continue with their plan to build a golf course in Macau.

The former Portuguese colony is the only area in China that allows legalize gambling since Chinese officials ended the gambling monopoly held by gaming magnate Stanley Ho in 2002. Las Vegas Sands spokesperson Ron Reese commented that their plans seem to be in touch with the current regulatory situation in Macau.


05/07/2008 01:44 PM
Richard Kennedy