What happened 

Shares of gaming giant Wynn Resorts, Limited (NASDAQ:WYNN) dropped 14.6% in June, according to data provided by S&P Global Market Intelligence, as gaming trends in Macau turned against the company.

So what

In early June, results from Macau's gaming revenue in May were released and they weren't as strong as expected. Gaming revenue was up 12.1% versus a year ago to $3.16 billion, but that fell well short of the 16% to 20% growth that analysts were expecting. Conditions didn't get much better in June when revenue was up 12.5% to $2.78 billion, which was also below the 18% growth expectations. It should be no shock that shares fell 6.3% in the first four trading days of July as well.

Macau's skyline from the water at night.

Image source: Getty Images.

Wynn Resorts gets nearly three-quarters of its revenue from Macau, so a slowdown in the region would be a big deal for the year's results. That said, the region is still growing, so it's not all bad news.

Now what 

Two months doesn't make a trend, so investors will want to watch what the longer-term trends are in Macau. If gaming revenue growth indeed slows or worse yet falls, it would be bad for Wynn's profitability long term. But I also don't think investors need to overreact to a quarter or two. China's economy is still strong and Macau is well positioned to benefit from the need for entertainment in the region. Long term, this is still a great business to be in even if the monthly ups and downs of gaming can cause the stock to be volatile.