The Macau gaming market has been decimated since mid-2014 by a crackdown on corruption and money laundering in China, causing gamblers, especially high-rolling VIPs, to reduce trips to the gambling enclave. But not only is gaming down, all six concessionaires in the region are planning to bring a new resort to the market in the next few years, which will increase supply tremendously.
The result has been falling stock prices for Wynn Resorts (WYNN -0.96%), Las Vegas Sands (LVS -1.41%), and Melco Crown (MLCO 0.49%), who all get most of their revenue and earnings from the region. These are the three biggest trends investors should be alarmed about right now.
