China is stacking the chips against U.S. casino giants that do big business in Macau signaling a tougher operating environment in the region.
The Macau government is planning to review and change the way gambling concessions are reviewed. These comments were made at a press conference today with Macau SAR Secretary of Economy and Finance Lei Wai Nong. Initially, several pro-democracy representatives were expected to be involved in what is considered a sub oversight effort but have since been sidelined in favor of pro-PRC representatives.
Las Vegas Sands refused to comment and inquiries made by FOX Business to Wynn were not immediately returned.
A potential layer of oversight on Chinese companies in Macau comes as Chinese companies listed on U.S. exchanges also face more scrutiny in terms of financial disclosures among other regulatory issues.
The two Presidents met Biden via phone in March last week, for the first time since February, where they discussed the U.S.-China relationship and guardrails and parameters as the two countries compete fiercely against each other. According to the administration, the end goal is to ensure they do not veer into conflict according to a read out from the White House.
For the year shares of Wynn have dropped 18.5%, while Las Vegas Sands are down 35.8% through Tuesday.