Macau Casino Stock Rebound Has Momentum
Posted on: July 28, 2025, 12:41h.
Last updated on: July 28, 2025, 01:19h.
- Traders bet resurgent casino stocks will continue moving higher
- Gauge of Macau casino stocks up nearly 60% from April lows
A widely observed gauge of Macau casino stocks is up almost 60% off its April nadir, and some traders are wagering those gaming names have more upside ahead as gross gaming revenue (GGR) in the special administrative region (SAR) perks up.
Buoyed by infrastructure improvements that are easing travel from mainland China and nongaming attractions, including big-name concerts, GGR in the world’s largest casino hub has been perking up, supporting rallies in stocks that had long been glossed over by market participants.
This (the June GGR report) is stronger than expected, thanks to the Jacky Cheung concerts and the continuing high VIP win rate,” wrote Jefferies analyst Anne Ling in a report out earlier this month. “Moving into the month, with the ending of Jacky Cheung concerts, the event calendar seems light MoM, with Aaron Kwok on 12-27 July and Sandy Lam on 19-27 July.”
Ling noted improved performance at Macau casino resorts is being driven by premium mass players, which is an encouraging sign because those guests aren’t just gamblers. Rather, they flock to Macau for nongaming amenities such as dining, entertainment, and shopping.
Macau Casino Stocks Poised for Earnings Season Rally
Second-quarter earnings season for gaming companies is in full swing, and if last week’s report from Las Vegas Sands (NYSE: LVS) is an accurate harbinger of things to come, Macau-related names could be poised to notch near-term upside.
The parent company of Sands China delivered impressive Macau results – a positive sign considering it runs five integrated resorts there – pushing the stock to its best intraday performance in months. That could be good news for the Macau operators that have yet to report, such as Wynn Resorts (NASDAQ: WYNN), among others.
Concessionaires are expected to deliver earnings before interest, taxes, depreciation, and amortization (EBITDA) beats, further supporting the notion that Macau casino stocks are inexpensive relative to EBITDA improvements.
“Nonetheless, the setup for stocks appears to be improving, with EBITDA valuations in the ~8-10x range and better-than-expected growth,” adds Ling.
She said her preferred names are Sands among the US-based Macau operators, and Galaxy Entertainment from the Hong Kong-listed group.
Why Sands Could Be Macau Casino Stock Leader
The three US-based Macau concessionaires are MGM Resorts International (NYSE: MGM), Sands, and Wynn. Of that trio, Sands may be the cleanest Macau story because it only operates there and in Singapore, where its Marina Bay Sands is one of the most profitable gaming venues in the world.
While Wynn is more of a Macau story, MGM could see enthusiasm for its Macau exposure damped by its status as the largest operator on the Las Vegas Strip, where visitation numbers are plunging. That could be one reason why US investors lean into Sands as a Macau play.
“LVS remains a top Macau pick given its strong management team, capital returns, leading position in mass, and unrivaled capacity (i.e., rooms, tables, nongaming),” observes Macquarie analyst Chad Beynon. “Additionally, Singapore continues to be an impressive source of strength and earnings.”
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