Stocks of leading American casino operators, such as Wynn Resorts (WYNN), Las Vegas Sands (LVS) and MGM Resorts International (MGM) are each up more than 7% on July 1 amid reports of a gambling boom in China.
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The U.S. casino stocks, which are closely associated with Las Vegas, are up sharply on reports of the latest spending data in Macau, the infamous Chinese gambling hub. Gaming revenue in the “Las Vegas of Asia” rose 19% in June from a year earlier, according to information from Macau’s Gaming Inspection and Coordination Bureau.
The sharp rise in gambling within Macau has the U.S. casino stocks up as they each have a presence in the Chinese gaming enclave. Most American casino operators have developed multi-billion-dollar businesses in Macau in an effort to capture some of the Chinese gambling spend.
Tourism Rises
Las Vegas Sands, for example, operates six hotels and casino properties in Macau. Wynn and MGM have smaller but still sizable operations in Macau. And now it looks like the environment is improving in the gaming center as more tourists and consumers visit its casinos and gamble more money.
Macau’s quarterly tourism data shows positive numbers for hotel and casino operators. Visitor arrivals in the first quarter of 2025 rose 11% from the year earlier, while the hotel occupancy rate climbed to 90% from 84%, according to Macau’s Statistics and Census Service. The gambling industry in China appears to have momentum heading into this year’s second half.
Is WYNN Stock a Buy?
The stock of Wynn Resorts has a consensus Strong Buy rating among nine Wall Street analysts. That rating is based on eight Buy and one Hold recommendations issued in the last three months. The average WYNN price target of $108.29 implies 6.42% upside from current levels.
