The communists in China are the worst casino operators ever. In 2014, the government cracked down hard on corruption and grifters, causing Macau gaming revenues to plunge by mid 30% range.
After years of horrible numbers, finally, Macau posted a positive growth number, which is causing the stocks of casinos to surge.
Macau Gaming Inspection and Coordination Bureau reported August gross gaming rev +1.1% YoY to 18.84 bln patacas ($2.36 bln) vs -35.5% in Aug 2015 and -4.5% last month. GGR is down 9.1% YTD. Gross gaming rev peaked in 2014 and fell 34.3% in 2015 after the Chinese govt cracked down on money laundering in Macau. Estimates call for a ~low double digit decline this year.
If in fact Macau gaming is back, then shares of WYNN, MPEL and others are going to skyrocket.
Here is the casino sector in Exodus and its returns over the past two years.
The companies with heavy exposure to Macau have been halved since then. Lots of potential upside.
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The Casinos main biz is smuggling money to off shore accounts. Lot of people want Yuans out of China so they can sell them. Chinese Govt cracked down on the Casinos, but looks like they have figured a way around it.