Melco Resorts & Entertainment Stock (MLCO): Why The Price Went Up Today

By Amit Chowdhry ● Jan 14, 2022
  • The stock price of Melco Resorts & Entertainment Ltd (NASDAQ: MLCO) increased by over 16% during intraday trading today. This is why it happened.

The stock price of Melco Resorts & Entertainment Ltd (NASDAQ: MLCO) increased by over 16% during intraday trading today. Investors are responding positively to a report that the Macau government announced the number of new casino operators allowed to function is going to be limited to 6 concessionaires. But their operating period is going to be halved to 10 years, according to Reuters.

The current licenses of the 6 Macau casino operators — Wynn Macau, Sands China, MGM China, SJM Holdings, Galaxy Entertainment, and Melco Resorts – were all due to expire this year.

“This is a positive outcome and meaningfully reduces Macau license risk and license term risk for Macau operators,” said J.P.Morgan analysts in a research note via Reuters.

The Macau government decided not to proceed with a proposal for a government official to directly supervise the casinos after feedback from the operators.

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