Macau gaming specialist Union Gaming said Macau’s transit visa scheme is set to “undergo a significant positive shift at year end.” Being the only Macau-based gaming research shop, Union Gaming is a more authoritative voice in the investment community.
According to analyst Grant Govertsen, under the new scheme, the Macau government is likely to allow a Chinese citizen entering Macau using a transit visa to stay for up to 14 days from 7 days previously, and 7 days from 2 days previously if they are entering Macau for a second time in the same month. Serious Chinese gamblers have used transit visas in the past to enter Macau because they are easier to get than tourist visas.
Govertsen sees the VIP gaming segment to benefit the most from this visa restriction:
Interestingly, we believe the greatest beneficiaries of a relaxed transit visa scheme are those persons who facilitate VIP gambling (junket agents) and to a lesser extent premium mass players themselves. We believe it was junket agents who were the hardest hit when the transit visa restrictions were put in place in July 2014 as agents would generally want to spend as much time in Macau as possible as they want to escort their customers (the gambler) for the duration of the customer’s trip. Further, as we’ve spoken with casino operators over the past year and a half, they have indicated that some of their premium mass players had been negatively impacted by transit visa restrictions.
"On the sidelines with WYNN, but looking to buy very soon in 63-65 target range +/- 2 points.
Will be buying shares as well as long call kickers."
Yesterday WYNN hit within the high side of my buy target range of 63- 65 +/-2pts at 66.72
I entered 50% of my long shares position between $67.10 - 67.25 with a 25% long call kicker position.
I will be adding to both long shares and long call position as market conditions warrant
1st simply upside target 77 - 80
2nd upside target of 92 - 100 no later than mid November