Various casinos in the Chinese gambling city of Macau have a problem, as it appears on January 3, 2018. The casinos give away too much money to their guests: too often the casino guests win a large cash prize.
Down at the fair
On the first trading day of 2018, various listed casinos from Macau fell sharply. This was due to Wynn Macau, a well-known casino that presented a 15 percent increase in sales. A good percentage, but less than the expected 20 percent. Cause? Wynn Macau, and many other casinos in Macau, give away too much money to their guests.
Because so many large amounts of money are won in the various casinos, it is difficult for analysts to predict the company's revenue and profit. It is therefore not surprising that the turnover of Wynn Macau was estimated too high.
Major gamblers are back
The big gamblers are the biggest problem according to analysts. They had disappeared from the scene for a while due to strict gambling rules in China, but are now completely back. And because they have had a lot of luck in the casino lately, the casinos in Macau have less sales and therefore less profit. Analysts expect that this will also be the case in 2018. Wynn Macau fell 7 percent on the stock market after the news. Other casinos in Macau were also hit by the news about Wynn Macau, namely by more than 5 percent.