Casino Shares Shaky in China Stock Market

Several companies within the casino industry saw their shares on the Chinese Stock Market -the Hang Seng Index- fall in recent days and there’s high expectation of more volatility for prices. The industry, despite optimism not too long ago, is now expected to witness slow growth for a while.
The rise and fall of any industry depends on many factors.
Whether it’s the casino industry or any other, there will be times when success and revenue is easier to come by, then a downturn. For some of these casino companies, the problems may be directly related to the nations in which these aspects are operating, such as in China itself and throughout Asia, but it could also be due to some external factors.
Wynn saw its shares drop, despite reporting a 58% increase in second-quarter profits. The drag for this company has been Wynn Palace Resort, which opened last August and is showing slow signs of growth in recent months. Wynn Macau also noticed its shares fall by 3.6%.
What’s driving casino shares down?
There are several factors that affect real life casinos, and it’s not always about economic circumstances in their local region. Online casinos are helping to impact the rise and fall of in-person casinos, and with the growing popularity of cryptocurrency, like Bitcoin and the online casino industry, it’s taking a serious bite out of live casinos.
Galaxy Entertainment Group is one of the largest casino operators throughout Asia and it, too, has seen stock prices drop by 1.9%. Sands China didn’t fall as sharply, but it’s 0.7% drop is seen as problematic for long-term growth.
Will this have long-term repercussions?
One significant factor that casinos need to keep in mind is that technology is vastly different today than it was just a decade or two ago. With better graphics, interactive options, and high speed Internet, people are beginning to enjoy the quick casino experience on their tablets and smartphones (Forbes). They no longer feel the need to drive a long distance and spend a small fortune at one time for the real live casino experience.
Aside from a few small, isolated regions around the world, such as Las Vegas -which is an experience in itself- most casino regions experience a rise and fall over time. The news from China may be an early indication that online casinos are truly taking a greater share of revenue away from more traditional casinos, and that players are okay with the options being provided.
The long-term impact of this downturn may not be felt right away, but as Bitcoin and other cryptocurrencies continue to grow in popularity (Business Insider) and are easier to access for the general public, this could mean more options for playing online games, getting better bonuses, and relying on aggregates to help them hone in on the best options for them at any given time.
It may only be the proverbial blip in the radar, but if the trend is like what Atlantic City has experienced in recent years, it may not bode well for these casinos and their operating companies for the future.