U.S.-based casino operators with major operations in Macau saw their stock prices jump this week following signs of easing trade tensions between China and the United States. The move was further supported by comments from Macau’s top official, offering reassurance to American gaming firms operating in the region.
Good to know
- Wynn Resorts, Las Vegas Sands, and MGM Resorts shares rose 5% to 8%.
- A 90-day pause on U.S.-China tariff hikes contributed to the investor optimism.
- Macau’s chief executive pledged continued support for compliant foreign operators.
Investors responded positively to the announcement of a 90-day suspension in planned tariff increases between the U.S. and China. Wynn Resorts saw its stock rise by around 8%, Las Vegas Sands climbed 7%, and MGM Resorts gained 5%, according to Investopedia. The broader S&P 500 also advanced 3% on the same day, reflecting an overall market lift driven by the pause in trade escalation.
The share spike is especially relevant given these companies’ strong presence in Macau, where gaming remains a major economic driver. Alongside the market news, officials in the region offered direct reassurance.
Macau Chief Executive Sam Hou Fai addressed the issue at a press conference, stating that American casino operators will not face retaliatory actions in response to decisions made by Washington.
“As long as they follow Macau’s laws and conduct their activities in an orderly and lawful manner, [the operators] are protected and supported,” Sam said.
He acknowledged broader challenges facing the sector, referencing ongoing global political shifts and rising competition in tourism and gaming. He also pointed to Macau’s continued dependence on gaming for revenue, which, he warned, could make the region more vulnerable to economic disruptions.
Sam used the opportunity to reinforce the city’s ongoing development strategy. The “1+4” diversification plan, announced in 2023, aims to reduce Macau’s reliance on gaming by expanding into other sectors. These include Chinese medicine, financial services, advanced tech, and the convention and exhibitions industry.
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