ATM Withdrawal Limits In Macau Bring Down Casino Stocks

MACAU -- ATM policies in the Asian resort of Macau may have been responsible for a drop in gambling stocks. According to reports on the world's business pages, shares of Wynn Resorts, Las Vegas Sands and Melco Crown Entertainment, among other casino stocks, posted noticeable declines after Chinese officials announced it would enforce a daily limit on ATM withdrawals.

While Macau is supposed to be autonomous, Chinese authorities exercise strong control over the resort that has grown into an acclaimed destination for gamblers. Starting Dec. 10, strict enforcement of the limit will cut maximum daily withdrawals from about $1,250 to $626.

The South China Morning Post, which first reported the new policy, noted the decision was made after officials in Beijing noticed what they deemed high levels of withdrawals from ATMs in a single month.

PHOTO:The Chinese government assumed formal sovereignty over Macau in December 1999. Its economy since then has continued to prosper with the sustained growth of tourism from mainland China and the construction of new casinos.