- Hedgeye's gaming analysts think another downturn in gambling revenue in Macau is likely and a reset on earnings expectations from Wall Street is needed.
- They note a national clampdown on corruption is still impacting the VIP segment, while the mass segment has new margin pressures.
- Though a local smoking ban in casinos isn't widely viewed as a threat to revenue, there has been some capital wasted on build-outs which aren't needed with new rules in place.
- Analyst Todd Jordan notes Las Vegas Sands (LVS -0.3%) and Melco Crown (MPEL -1.7%) have downside potential, while Galaxy Entertainment (OTCPK:GXYEF) is holding up better than peers in the group.
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Hedgeye interview (video)