Casino stocks (LVS, WYNN, MGM, MPEL) spike as Macau relaxes visa rules

• Casino gaming stocks rose -- including Las Vegas Sands (LVS +4.8%) Wynn Resorts (WYNN +6%) MGM Resorts (MGM +3.9%) and Melco Crown (MPEL +10.1%) -- as China relaxed tourist restrictions in Macau.
• Betting in Macau has been in steep decline amid a government crackdown on corruption, with gambling revenue slipping 24% in the 12 months through May.
• Now, visitors from mainland China (two-thirds of Macau visitors) can stay seven days, up from a previous five, and high-frequency visitors can come twice in 30 days, up from twice in 60 days.
• The move points to the government likely feeling it needs to support the flagging demand, says Anthony Wong of UBS. Bernstein says it's one of the first real positives in over a year, while Wells Fargo's Cameron McKnight thinks the visa changes are short-term, and that moves up are due to short-covering and will likely fade.
• McKnight expects June revenues, to be released tonight, to show a 39%-40% dip.