Macau casino shares soared after two casino executives told Reuters that China had eased its restrictions on travel to Macau by residents of China’s Guangdong province. Shares of Galaxy Entertainment rose more than 7% on Monday.But note that the sources for this information were senior employees of casinos who have a vested interest in this news being true.
The future of gambling in Macau rests solely with the government of China. If it keeps the same tight control of visas that has in recent times than a lot of casinos are facing major write-offs on assets. Yet it is known that much of the money coming from China into the casinos has been derived from sources which can, charitably, be called unorthodox.
Forbes said that the two casino sources told Reuters that China had quietly begun relaxing restrictions for its citizens from Guangdong traveling to Macau, leading to a strong showing for casinos so far this month and big hopes for October. Amazing that no one has nailed down this rumor. If true, it is an amazing turn around by the Chinese government. If not true, it is market manipulation.
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