Why MGM Resorts Stock Is Sliding Today

MGM Resorts International MGM shares are trading lower Tuesday following reports suggesting Osaka will delay the opening of a planned casino resort to late 2030.

What Happened: According to a Japan Times report, the Osaka government said they will push back the opening of the casino resort from late 2029 to the fall of 2030 due to central government approval delays. 

The government also announced plans to increase their initial investment in the resort from ¥1.08 trillion ($7.32 billion) to ¥1.27 trillion as a result of rising construction material costs. The report indicates that a revised plan has been submitted and a contract could be signed as soon as this month.

A company led by MGM and Japan's Orix are set to build and operate the resort.

In other news, Macau reopened multiple casinos over the weekend following a shutdown in the gambling hub due to severe storms. Typhoon Saola hit Macau early Saturday and casinos were ordered to close for approximately eight hours, per Bloomberg. 

The report indicates that Typhoon Mangkhut caused an 18-hour shutdown in 2018 which ended up costing MGM millions in revenue. 

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MGM Price Action: MGM shares were down 2.47% at $43.26 at the time of publication, according to Benzinga Pro.

Photo: Filip Filipović from Pixabay.