Junket Crackdown May Be Headed to Macau: Melco Crown Entertainment Ltd (MPEL), Las Vegas Sands Corp. (LVS)

The two stocks that could be hurt the most are Wynn Resorts and MGM Resorts International (NYSE:MGM) because they have to rely on the Macau Peninsula for revenue, and Wynn has always relied on high rollers to drive results. The Cotai Strip, where Las Vegas Sands and Melco Crown are concentrated, has seen a big jump in mass market play, and while they would be hurt, Vegas would be somewhat insulated from a crackdown on junkets.

I haven’t bailed ship yet on my Wynn position, but this is making me think twice. The next few months will be extremely important for Macau and investors should pay particular attention to monthly gaming growth there. After the Chinese New Year, it may see pressure again.

The article Junket Crackdown May Be Headed to Macau originally appeared on Fool.com and is written by Travis Hoium.

Fool contributor Travis Hoium manages an account that owns shares of Wynn Resorts, Limited. The Motley Fool has no position in any of the stocks mentioned.

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