Gaming stocks in Hong Kong are experiencing a broad decline.

Wynn Macau, Sands China, and Galaxy ENT have all fallen by more than 2%, while SJM Holdings is down over 1%.

The upcoming 2026 FIFA World Cup, scheduled from June 11 to July 19, is a key factor behind the market movement.

Analysts from Morgan Stanley and J.P. Morgan have noted that the tournament may temporarily divert the time and funds of high-stakes players, putting pressure on gaming revenue for June and July.

Morgan Stanley forecasts June's gross gaming revenue to reach MOP 20.8 billion, representing a 1% year-on-year decrease.

This projection implies that second-quarter revenue growth will be a modest 4% compared to the same period last year.

A significant challenge is the high revenue base from the first half of 2025, particularly last June's figure of MOP 21 billion, which makes for a tough year-on-year comparison.

Furthermore, Morgan Stanley indicated that the anticipated revenue increase is insufficient to offset rising cost pressures, leading to an expectation that second-quarter EBITDA will be flat year-on-year.

UBS has also weighed in, predicting that pressure on industry profit margins will likely begin to ease gradually in the second half of 2026.