Billions Blown As Gov't Cracks Down On Macau Casino Investors

Shares of Macau casino operators on Wednesday shed as much as a third of their value, losing about $18 billion, as the government kicked off a regulatory overhaul that could see its officials supervising companies in the world's largest gambling hub, Farah Master and Danny Kwok reported for Reuters.

Photo Insert: A casino hotel along the Macau strip.

With Macau's lucrative casino licenses up for rebidding next year, the plan spooked a Hong Kong market already deep in the red after Beijing's regulatory crackdown on sectors from technology to education and property that sliced hundreds of billions of dollars off asset values.

Wynn Macau led the plunge, falling as much as 34% to a record low, followed by a 28% tumble for Sands China. Peers MGM China, Galaxy Entertainment, SJM, and Melco Entertainment all fell heavily, taking the drop to HK$143 billion ($18 billion).

US casino companies also fell for the second straight day, losing as much as $4 billion in market capitalization on Wednesday, with Las Vegas Sands Corp. slumping to more than a year low, Wynn Resorts Ltd. and MGM Resorts International dropping 8% and 5%, respectively.

The slump came after Lei Wai Nong, Macau's secretary for economy and finance, gave notice on Tuesday of a 45-day consultation period on the gambling industry to begin from the following day, pointing to deficiencies in industry supervision. Beijing, increasingly wary of Macau's acute reliance on gambling, has not yet said how the license rebidding process will be judged.

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