Deutsche Bank Downgrades Macau
Deutsche Bank has downgraded a number of key casinos in the Macau gambling sector as a response to slowing demand and perhaps fears of Chinese government intrusion. Earlier in the week, Gambling911.com reported on how the Chinese government has begun to crack down heavily on gambling and other so-called “vice” activities.
Deutsche's Karen Tang also cited rising labor costs and longer times for approval required for new facilities as a primary reason for the downgrades. Additionally, the Chinese government will be imposing a casino smoking ban in the coming weeks.
Tang downgraded the Macau’s Wynn Resorts (NASDAQ: WYNN) to Sell from Hold and moved her rating on the China Sands unit of Las Vegas Sands (NYSE: LVS) to Hold from Buy.
Other downgrades included Galaxy Entertainment (OTC: GXYEY) $61.50 from $80; Melco Crown Entertainment (NASDAQ: MPEL) $29.03 from $41; MGM China (OTC: MCHVY) $27 from $32 and SJM Holdings (OTC: SJMHF) $20.05 from $21.50.
- Aaron Goldstein, Gambling911.com
