Macau gaming shares fall as gov't warns of budget deficit risk

About this update from Melco International Development Limited

** Macau gaming stocks fall after the enclave government warns the gambling hub could face a budget deficit** Shares of Melco International HKEX:200 lead slide in the sector, falling 3.4% to HK$3.37 in their biggest one-day pct drop since April 7** Sands China HKEX:1928 falls 2.7%, Wynn Macau HKEX:1128 declines 2.2%, MGM China HKEX:2282 eases 2%** SJM (0880.H) and Galaxy Entertainment HKEX:27 slip 1.4% and 0.9% respectively ** Macau's Chief Executive Sam Hou Fai told local legislators that the enclave risks slipping into a budget deficit if gambling revenues in the world's biggest gambling hub drop below 15 bln patacas ($1.88 bln) a month after they fell short of government forecasts in the first quarter** Macau's first-quarter gaming revenue rose 0.6% year-on-year to 57.7 bln patacas, or 19.2 bln patacas per month, versus the government's full-year forecast of 240 bln patacas, or 20 bln patacas per month** Beijing and Macau authorities have mandated that the six licensed casino operators Sands China, Wynn Macau, SJM, MGM China, Galaxy, and Melco Resorts (MPEL.O) diversify their revenue base away from the casino industry($1 = 7.9900 patacas)

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