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Here’s Why Casino Stocks Tumbled On A Trial In Macau

Casino stocks MGM Resorts International (MGM), Las Vegas Sands (LVS), and Wynn Resorts (WYNN) fell Friday after a top prosecutor in Macau was found guilty of corruption as the Chinese government continues its crackdown in the gambling district. But the casinos closed near their best levels of the day. Ho Chio Meng was sentenced to 21 years in jail after he was found guilty for illegally awarding nearly 2,000 public contracts that benefited Ho and his family.

MGM shares closed down just 3 cents to 31.90 on the stock market today after falling as low s 31.09 intraday, briefly undercutting their 50-day moving average. The stock is still in buy range.

MGM is less exposed to Macau than Las Vegas Sands and Wynn Resorts, but will open a new casino resort there later this year.