Wynn Resorts shares fall 2% after weak June gambling revenues for Macau – MarketWatch

Shares of high-end hotel and casino operator Wynn Resorts Ltd. WYNN, -2.32% slumped 2% Monday, after the latest gaming revenue numbers from Macau fell short of expectations. The Gaming Inspection and Coordination Bureau of Macao said June revenue rose 26% at the Chinese enclave, home of Wynn's most expensive property, the Wynn Palace, opened in 2016 to much fanfare. Instinet analyst Harry Curtis said that was well below the low end of his 30% to 35% estimate. The 22% gain for the second quarter was also below his 24% estimate, as gross gaming revenue fell sharply at the end of June, which the analyst attributed to tensions surrounding China's President Xi Jinping's visit to Macau's neighbor Hong Kong. "While it's too early to determine what, if any, impact the KYC and AML regulations are having on mass and VIP GGR, respectively, this issue will gain increased focus by investors given the June GGR shortfall," he wrote in a note, referring to Know Your Customer anti-money laundering rules. "That said, our view is that Xi's visit (and not KYC/AML regulations) explains most of the end-of-month deceleration." Macau had struggled through several years of declining revenue, after a Chinese government crackdown on corruption that spooked some of the high-rollers that had flocked to its casinos from the mainland. Gaming revenue has Wynn shares have gained 52% in 2017, while the S&P 500 SPX, +0.23% has gained 8.9%.

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Wynn Resorts shares fall 2% after weak June gambling revenues for Macau - MarketWatch