Casino operator Crown Resorts Ltd (ASX: CWN) has been one of the worst performers on the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) this morning. At the time of writing its shares are down 6% to $11.32.
Today's decline comes amid reports in the South China Morning Post which reveal that the Monetary Authority of Macau plans to half the amount of cash UnionPay card holders can withdraw from ATM machines.
UnionPay is the dominant card payment handler in China, accounting for 80% of debit cards on issue according to the Financial Times.
Reuters reports that the daily withdrawal limit is expected to be cut to US$646 from US$1,300 as soon as this weekend.
Just when the world's largest gambling market was starting to find its feet, the rug has well and truly been pulled from beneath it.
Casino shares in the United States plunged on the news, with investors clearly fearful that this will cause a sharp reduction in revenue. Melco Crown Entertainment's US-listed shares plunged almost 14%.
At this stage it is difficult to gauge just how negatively this change will impact Crown's results. But I'm not sure I would be willing to wait and find out.
With this and the recent arrests in China still weighing on the company's shares, I would suggest investors gain exposure to the industry through an investment in Star Entertainment Group Ltd (ASX: SGR) instead.
Though as we have seen today, an investment in casino operators can be a bit of a gamble at times.
