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Share price of Melco Crown Entertainment Limited (MPEL - Snapshot Report) that generates a better part of its revenue from Macau plunged 7.0% since gross gaming revenues for the month of June was announced. Gross gaming revenue declined 3.7% to $3.4 billion. (Read More: Macau June Gambling Revenues Decline as World Cup Diverts Bettors)

Over the past six months, share price of this leading casino operator has declined 9.8% against an increase of 28.8% over the same period last year. Macau has lost steam with high-stake gamblers curtailing spending amid a cooling Chinese economy.

Moreover, the crackdown on corruption in China to stop billions of dollars from being siphoned off illegally from mainland China to Macau has also affected footfall and thereby put a brake on the growth momentum of the casinos. According to Bank of America Merrill Lynch, gross gaming revenue for the month of July could decline 11.0%.  

Moreover, the execution of its expansion plans, which includes the opening of the City of Dreams Manila resort in Philippines this year, could also be a challenge for this Zacks Rank #4 (Sell) company. Reportedly, the company is planning to raise $129.0 million debt for the funding of City of Dreams Manila casino through sale of shares. (Read More: Gambling Stock Roundup: Isle of Capri, Penn National and Melco Crown Dominated Headlines). Moreover, the Studio City project, which is scheduled to open in 2015, has not received a table gaming license yet. In case it is not approved, it would be a waste of funds for the company.

Meanwhile, other leading casino operators like, Las Vegas Sands Corp. (LVS - Analyst Report), MGM Resorts International (MGM - Analyst Report) and WYNN Resorts Ltd. (WYNN - Analyst Report) that generate majority of their revenues from Macau were also adversely impacted. Share price of Las Vegas Sands declined 3.5%, while MGM Resorts declined 3.1%. Meanwhile, WYNN Resorts has lost approximately 3.8% since the company reported June Macau results.