Macau's new Chief Executive, Fernando Chui, gave his first policy address March 16. He had been expected to announce stringent plans to slow the overheated gaming market in the Chinese region and announce steps to diversify Macau's economy. Gaming revenues increased almost 70% in the first two months of this year compared to 2009. Gambling accounts for about three-quarters of government revenue for Macau However, his comments appear to have resulted in a sigh of relief by major casino operators who already have a presence in Macau such as Wynn and Las Vegas Sands.
Reuters reports that Chui intends to limit the building of new casinos. This could help current operators' profits by protecting the market from oversupply of new casinos. Wall Street will give its opinion when the NYSE opens this morning.
To read Reuters:
Macau government to regulate the building of casinos
Wall Street Journal initial story (subscription may be requred):
Macau Gambling Industry Awaits Chui's Speech
Update: RJ's Howard Stutz weighs in.
Macau Curtailing New Casino Construction
Update #2: The market liked WYNN and LVS today. Wynn +4.48% and LVS +7.33%.