Macau Casino Stocks Slump on Renewed Money-Exchange Crackdown

Shares of Macau casino operators declined Monday as the world’s biggest gambling hub seeks to criminalize illegal money-exchange activities, a common way for Chinese players to circumvent the country’s tight capital controls.

A Bloomberg Intelligence gauge of Macau casino stocks sank as much as 3.4% after reports city officials plan to add a provision to a bill on gaming crimes stipulating that those who lend to or exchange money to gamblers without authorization could face up to five years in prison. Galaxy Entertainment Group Ltd. fell as much as 5.7% in Hong Kong, while Sands China Ltd. shed 5.2%.