Gambling stocks are collectively trading lower in Hong Kong. As of the latest update, SJM Holdings (00880) fell 2.52% to HKD 1.55, MGM China (02282) dropped 2.02% to HKD 11.13, Sands China Ltd (01928) declined 2.04% to HKD 14.42, and Melco Int'l Dev (00200) slipped 1.9% to HKD 3.61.
On the news front, the Macau Gaming Inspection and Coordination Bureau reported that gross gaming revenue from Macau's lucky games in July fell 8.4% year-on-year to MOP 20.26 billion, marking the second consecutive month of annual decline. However, on a month-over-month basis, revenue rose 9.4%. For the first seven months of this year, Macau's lucky games gross gaming revenue grew approximately 4.4% year-on-year to MOP 147.161 billion.
A recent analysis from Huatai Securities suggests that the Macau gaming sector is currently in a phase where short-term disruptions are easing, summer holiday demand catalysts are increasing, and improvements in leading operators' operations are gradually materializing. In the near term, the conclusion of the World Cup and a rich lineup of summer activities are expected to help boost market sentiment to some extent. Over the medium to long term, growth in mass-market gambling, market share gains driven by a synergetic non-gaming entertainment ecosystem, and the commissioning of renovation projects are anticipated to support the recovery of leading operators' profitability and a more balanced business ecosystem, fostering sustainable growth.
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