Gaming stocks in Hong Kong extended their losses. At the time of writing, Melco International Development Ltd (00200) fell 4.79% to HK$3.38. Galaxy Entertainment Group Ltd (00027) dropped 4.34% to HK$29.56. Sands China Ltd (01928) declined 4.26% to HK$13.72. MGM China Holdings Ltd (02282) was down 3.66% at HK$9.99.

A recent research report from Citi suggested Macau's gaming revenue may face headwinds, as the summer World Cup could divert some betting budgets away from Macau players. Furthermore, the comparison base is higher this year due to concerts held in Macau by Jacky Cheung during the same period last year. The bank maintained its June gaming revenue forecast at MOP 19 billion, implying a year-on-year decline of 10%.

CLSA also noted that Macau's gaming sector is entering its seasonal low in the second quarter. With the World Cup spanning 39 days, it is expected to draw some visitors away, potentially leading to a quarter-on-quarter decline in the industry's second-quarter EBITDA. The firm has consequently lowered its 2026 gross gaming revenue growth forecast for Macau by 1 percentage point.

Additionally, both Sands China Ltd and Wynn Macau raised their capital expenditure guidance in their first-quarter results. This move may pressure MGM China Holdings Ltd and SJM Holdings to similarly increase capital investment to maintain competitiveness. Analysts predict a significant rise in total industry capital expenditure, which is expected to pressure free cash flow.