Shares for casino operators surged Monday on strong performance in Macau during China's Golden Week national holiday. Las Vegas Sands and Wynn Resorts were both active movers during trade.
A Citigroup table survey for October showed record betting levels during the national holiday, which kicked off on Oct. 1, GGR Asia reported Monday. Total observed wagers hit a record high of HKD 27.2 million ($3.5 million), up 81% from October 2023 and up 18% from the Chinese New Year period in February.
Premium mass table utilization was around 52%, which marked the highest level in Citi's records since the Macau casinos reopened after the Covid-19 pandemic in January 2023. Meanwhile, the number of observed premium mass players was also a record high, up 90% from the October 2023 survey.
Premium mass players are high-limit gamers that don't qualify for VIP status but who expect to receive complimentary benefits.
"Premium mass demand has always been resilient despite the weak Chinese discretionary spending trends year-to-date," Citi analyst George Choi wrote in the note. He added that China's recent economic stimulus measures "further enhanced players' appetite for gaming."
Separately, CLSA analysts Jeffrey Kiang and Leo Pan on Friday noted they expect Macau's gross gaming revenue (GGR) to grow 6% year-over-year for October as a whole.
A Citi report from the end of September also found that the number of high-rolling gamblers in China is growing, and they are wagering larger hands.
Macau Spurs Casino Stocks
LVS stock jumped nearly 3% premarket before settling to a 1.4% gain Monday. Shares have been scaling up the right side of a cup base and are up 8.4% overall this year. The stock has rallied nearly 46% from an August low.
WYNN shares rose about 1% Monday, also nearing a prior high in a cup base. Wynn Resorts rallied almost 17% in 2024, and is up 48.6% since early August.
Hong Kong-based Melco Resorts & Entertainment swung 3.8% higher Monday.
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