Macau casino stocks hit the jackpot on US-China tariff ceasefire
Shares of US-based Macau casino stocks jumped on 12 April (Monday) and enjoyed a bump this week after announcement that America and China would hold off on any new tariff hikes for the next 90 days. This fueled investor confidence—especially in sectors hitched to Chinese market sentiment.
According to Investopedia, three major players in Macau saw their shares rise. On Monday, Wynn Resorts saw shares jump nearly 8 percent, Las Vegas Sands soared by about 7 percent, and MGM Resorts gained 5 percent. On the same day, S&P 500 rose 3 percent. This week’s boost could also stem from Macau’s Chief Executive, Sam Hou Fai’s reassuring comments.
Macau won’t target US casinos
Fai has ruled out any retaliatory action against American casino operators, despite the ongoing trade tensions between Beijing and Washington. Speaking at a press conference following the visit of Xia Baolong—Beijing’s top official for Hong Kong and Macau affairs—Sam said the city’s gaming industry would not be drawn into broader geopolitical disputes. His remarks were reported by Rádio Macau.
“The six gaming operators in Macau, as long as they follow Macau’s laws and conduct their activities in an orderly and lawful manner, are protected and supported by the Government of the Macau SAR,” Sam announced.
His comments come amid growing concern that US casino operators in Macau, such as those linked to Las Vegas-based firms, could face regulatory or political pressure as tensions escalate between the two superpowers. Meanwhile, Sam acknowledged “profound changes reshaping the international geopolitical landscape” and “intensifying competition in the tourism and gaming sectors”. He said these factors and Macau’s over-reliance on gaming for tax revenue, limits the city’s “capacity to withstand economic shocks”.
Fitch’s warning to casino operators
In April, Fitch Ratings warned that American gaming operators in Macau are facing increasing pressure from rising geopolitical tensions between the US and China. As the trade war between the two economic powers deepens, concerns are growing that US-based casino firms could become collateral damage in a prolonged diplomatic and economic standoff. “Trade tensions between the U.S. and China have raised concerns that U.S. gaming operators could be subject to retaliation,” Fitch said in a statement.
The rating agency said that American firms such as Las Vegas Sands, Wynn Resorts, and MGM Resorts International are heavily reliant on their operations in Macau. In 2024, Macau accounted for 63 percent of Las Vegas Sands’ consolidated revenue, 52 percent for Wynn, and 23 percent for MGM. All three companies operate through publicly listed subsidiaries in Hong Kong, adding a layer of operational complexity as well as exposure.
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