HOT Stories more

Arizona tribal casino revenue up 4.5 percent

Article

Morgan Stanley changes opinion on Sands China

August 11, 2014 7:05 PM by Ray Poirier

Morgan Stanley: Sands China 'no longer best idea' Analysts look to two different gambling segments when considering the impact of a slowdown in Macau. The first is the obvious VIP market that involves the high-rollers who are guided to Macau from mainland China by licensed tour groups. The second has been dubbed the “mass market” crowd.

Obviously, low numbers in June, said analysts, were caused by fewer VIP groups because so many high-stakes gamblers preferred to stay in China during the World Soccer Cup.

But, also affected, was the mass market, which also felt the impact of fewer numbers.

Because of this, Morgan Stanley analysts, who have for months touted Las Vegas Sands Corp. (LVS) as a Macau investment, have changed their opinions. They now say Sands China, a subsidiary of Las Vegas Sands that operate the most casinos and hotels in Macau, is “no longer a best idea.”

“The recent slowdown in mass segment,” they said in a recent note, “rise in staff costs due to labor shortage that will continue for some time, stalled construction of Parisian (next Cotai project) and general investor sentiment may keep stock price in a tight range or lower in the very near term.”

Shares in LVS plummeted in value last week.

Ray Poirier is the longtime executive editor at GamingToday.

Contact Ray at RayPoirier@GamingToday.com.

Like GamingToday on Facebook GamingToday on Facebook      and        Follow GamingToday on Twitter GamingToday on Twitter

GT Football Special

GamingToday Race and Sports Futures

           Westgate Superbook  Stratosphere Sports Book  

                Wynn Sports Book  CG Technology

top stories

Slot Club Spotlight | New members signing up for the A-Play Club can win up to $1,000 with a scratch card, plus if you earn 250 same-day base points, swipe your card at a kiosk for another chance to win up to $250 in free slot play.

NFL Previews |  The AFC North was the powerhouse division in the NFL last season, finishing a league-best 13 games over .500 and getting both AFC wild cards for only the second time since the current playoff format was invented in 2002.

V.I.P. Pigskin Picks | FREE PREVIEW! NFL training camps are open and the regular season begins in a little over a month, on Thursday, Sept. 10, with the defending champion Patriots hosting the Pittsburgh Steelers.

V.I.P. On the Mark | FREE PREVIEW! Since we’ve cracked August, let’s introduce my annual NCAA Football Dirty Dozen. Don’t bother applauding. Nobody campaigns to be on this list. That said, bettors love them. 

Gaming revenue in Macau casinos fell 34.5 percent during July, compared to the same month a year ago. The total for the month was $2.3 million. It was the 14th consecutive month of year-to-year declines.

Check out our writersCheck out our writers