Casino Stocks Rip As China's Macau Territory Has Highest Monthly Revenue In 4 Years

Casino stocks traded notably higher Thursday in reaction to encouraging data from Macau, considered to be the gaming capital of the world.

What Happened

Casinos operating in the Chinese hub of Macau recorded their best monthly revenue in four years, Reuters reported. As a whole, revenue for the month of October rose 2.6 percent year-over-year to 27.3 billion patacas ($3.38 billion). The industry benefited from a week-long national holiday where visitation rose 7 percent from a year ago and most hotels were operating near capacity.

Why It's Important

Macau's October performance marks the 27th consecutive month of monthly revenue growth and was in-line with analyst's expectations of flat to 5 percent growth, Reuters said.

The monthly performance could be seen as disappointing, however, since October is considered a "peak month" for the gaming industry due to the national holiday. In fact, the month had a strong start highlighted by a 14 percent jump in Chinese tourists but the data appears to show a loss in momentum.