A smoking lounge at the City of Dreams casino-resort
Casino operators surged in Hong Kong yesterday following the statements made by Alexis Tam on the sidelines of Friday’s Legislative Assembly plenary debate. The secretary told journalists he is unsure whether the government will or will not take a step back on the smoking ban bill. He said that authorities remain open to proposals by the gaming industry.
“We look forward to the gaming industry proposals. I can’t say much here. How can I deny them if I haven’t read them? We must be objective. I can’t say anything since I have to see what their suggestions are.”
MGM China jumped 6.9 percent at the close of the Hong Kong trading session, as Wynn Macau rallied 5.6 percent and Sands China valued 4.7 percent. Galaxy Entertainment Group gained 3.9 percent and SJM stock has gained 1.7 percent. Melco Crown Entertainment stock valued at the Nasdaq index.
Benjamin Collett, Hong Kong-based head of Asian equities at Sunrise Brokers LLP, commented on the non-confirmed possibility that the government may soften the anti-smoking regulations and allow casinos to keep the airport-style smoking lounges that are currently allowed on mass gaming floors.
“It’s a squeeze, a bear-
market squeeze, so anything can trigger it,” he told Bloomberg. According to him, Alexis Tam’s statements indicate “a softening of the government’s stance, and that’s positive enough to make you reduce your short position.”
Gross gaming revenue fell 36 percent in June from a year earlier to its lowest level in more than four years. High-stakes gamblers would look to reduce their trips to Macau by 17 percent and cut their length of stay after the smoking ban is implemented, Deutsche Bank AG said in a June 29 report, citing a third-party report commissioned by the city’s six casino operators. MDT/Agencies
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