Casino stocks rally after Las Vegas Sands executives predicted a fast turnaround for the Asian gambling industry. They said the company would use its cash for acquisitions. Las Vegas Sands improved 12 percent to $45.79 Thursday as the market closed.
It was the highest percentage increase for Sands’ stocks since November 1, 2018, when its shares improved 11.8 percent. Also, other casino stocks increased their values, including Wynn Resorts Ltd. (8.6 percent), MGM Resorts International (3.7 percent), and Melco Resorts and Entertainment Ltd. (5.9 percent).
Sand executives held an earnings conference call Wednesday. They said that Asia would rebound faster than the United States because customers in the region are more familiar with wearing face masks. Also, Asians don’t have a problem with having their temperature taken before entering a building.
Casino Stocks Rally after Sands’ Earnings Report
Asians will not have any problems after the coronavirus pandemic. Sands COO Robert Goldstein told sportsbook pay per head that Asians would welcome the precautionary measures. As a result, Asia will recover fast.
However, Sands executives have concerns about the recovery rate of Vegas. Some people in the US think they are losing their freedom by staying at home.
Based on bookie software reports, Sands CFO Patrick Dumont is optimistic about the gambling industry in Macau by summer. Also, he thinks it will be a much better place in the fall. Dumont feels good about the company’s return to Macau. However, he has little hope about the company’s operations in the US.
According to betting software sources, MGM, Wynn, and Sands have properties in Macau. Industry insiders think that travel bans will be lifted within the next two months. Social distancing will have a minimal effect due to the ratio of the area to the number of tables on the casino floor.
Sands is operating at close to zero revenue during the coronavirus lockdown. However, it continues to develop its plans for Macau with its existing resources.