Casino Stocks Skyrocket Due to Enhanced Exposure to China's Trade Agreement
Casino Stocks Soar on U.S.-China Tariff Deal
Casino operators like Wynn Resorts, Las Vegas Sands, and MGM Resorts International saw their shares surge ahead of the broader market on Monday, following the U.S. and China's agreement to cut tariffs for 90 days. Given their casino operations in Macau, these companies are heavily exposed to the Chinese economy.
Wynn Resorts and Las Vegas Sands generated around 47% of their first-quarter adjusted property EBITDA in Macau, while MGM Resorts International's MGM China unit accounted for a similar portion of its Q1 adjusted EBITDA.
In its first-quarter report, Las Vegas Sands acknowledged that growth in the Macau market had slowed in the current environment, but remained optimistic about future potential given its decades-long investments in the region. Shares of the trio were up around 8%, 7%, and 5%, respectively, on a day when the S&P 500 was advancing 3%.
Despite the recent rise, Wynn shares have gained approximately 10% for the year, while Las Vegas Sands and MGM Resorts have experienced setbacks with losses of 17% and 1% respectively.
To nail down the exact percentage of a company's EBITDA coming from Macau, it's essential to delve into the financial data for each company's Macau operations. For instance, Wynn Resorts reported a 25.8% decline in Macau's adjusted property EBITDAR in the first quarter of 2025, amounting to $252 million, compared to the previous year's $340 million. Data regarding Las Vegas Sands and MGM Resorts International's EBITDA from Macau wasn't readily available, though it's well known that these companies also have substantial interests in the region.
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The recent agreement between the U.S. and China to cut tariffs has positively impacted casino operators with significant presence in Macau, such as Wynn Resorts, Las Vegas Sands, and MGM Resorts International.The trio's shares surged ahead of the S&P 500 on Monday, with gains of 8%, 7%, and 5% respectively.However, despite the recent rise, Wynn Resorts has seen a 10% increase for the year, while Las Vegas Sands and MGM Resorts have experienced losses of 17% and 1% respectively.Understanding the exact percentage of a company's EBITDA coming from Macau requires an analysis of the financial data for each company's Macau operations. For instance, Wynn Resorts reported a 25.8% decline in Macau's adjusted property EBITDAR in Q1 of 2025.
