Shares of casino giant Wynn Resorts (NASDAQ:WYNN) climbed another 9.7% in trading Tuesday, after a big day to start the week yesterday. Shares closed the day up 8.4%, and the casino industry finally seems to be revived from its COVID-19 doldrums.
The move today continues the pop yesterday driven by visa-related news from Zhuhai, a city next to Macao in China. In the past day, there's been some clarity on the scope of visas being allowed, with the Macau News reporting that non-tourism visas for travel to Macao from all mainland China provinces will also be allowed.
Most visitors to Macao don't use non-tourism visas, but this is a step in the right direction for opening the flow of customers to casinos again. The hope is that in the next few months, restrictions will be lifted further and gambling revenue will return.
For Wynn Resorts, where Macao represents more than half of revenue, any positive signs can move the stock higher. I wouldn't expect a sharp bounce in revenue, but there could be a steady level of growth as visas open and vaccines potentially become available later this year for COVID-19. Investors shouldn't be surprised if gambling stocks continue to be volatile, but right now they seem to be headed in the right direction.