Despite Macau gambling revenue increase, US gaming stocks fall

Those casino owners with interests in the gambling market in Macau received good news on Wednesday when it was revealed that revenue increased in record numbers in October. The bad news was that stock prices for many of these companies dropped.

The Macau casino gambling industry has seen major increases in revenue for two straight months. After a record September, October proved to be an even bigger months for Macau casinos. Revenue was up to us$ 1.59 billion. It was an increase of 42 % over October of 2008.

Contributing to the record revenue was the Chinese economy, which has somewhat stabilized. There also was a long National Day holiday that helped boost revenue figures. Macau had already surpassed Las Vegas as the casino gambling capital of the world.

Stock prices rose in the US when the revenue figures were released for September, but the same did not happen on Wednesday when the October figures were revealed. Several of the major companies with casinos in Macau had their stock prices drop Wednesday.

Las Vegas Sands stock dropped just under 2 %, closing the day at us$ 14.86. Wynn Resorts also has casino interests in Macau, and their stock was down to us$ 55.27, a decline of around 1.5 %. MGM Mirage dropped over 3 %, to us$ 9.32, and Melco Crown fell to us$ 5.06, down under 2 %.