After The South China Morning Post yesterday reported that Macau, acting on pressure from Beijing, would sharply lower the amount that some consumers can withdraw from ATMs in the region, Macau's government is clarifying the report today, according to Bloomberg. Meanwhile, Citi wrote that yesterday's sharp decline in Macau casino owners' stocks in the wake of the report was overdone, while JPMorgan believes that MGM (MGM) provides the biggest opportunity for investors following yesterday's pullback. Both firms issued their notes before Bloomberg's report was published.

WHAT HAPPENED: Macau's government was said to be planning to cut the daily withdrawal limit of cash that China UnionPay bank card holders can withdraw from ATM machines in the region by 50%, starting on Saturday, The Post reported yesterday. However, today, Macau's government is saying that the daily limit will continue to be 10,000 patacas, Bloomberg reported. China UnionPay account holders will not be able to withdraw more than 5,000 patacas per transaction starting today, the news service quoted Macau as saying.

ANALYST REACTION: The large decline in Macau casino names yesterday was overdone, wrote Citi analyst Anil Daswani. Neither VIP gamblers nor the top non-VIP players, known as "premium mass," rely on UnionPay ATM withdrawals to obtain cash in Macau, Daswani stated. VIP players go on junkets that enable them to avoid carrying cash, while premium mass players primarily obtain cash from foreign bank accounts or by making purchases with their UnionPay cards and converting the purchases into cash, the analyst explained. Even the players who bet the lowest amounts appear to spend much more than the current ATM withdrawal limit, Daswani added. Taking a more cautious view was JPMorgan's Joseph Greff. Greff stated that it's "nearly impossible" to estimate the impact that such a rule change would have on spending per trip in Macau. However, he thinks that the biggest impact of such a change could be on the mentality of gamblers towards Macau as China steps up its regulation of the region. Gamblers could cut back on their trips and spending as Beijing gets stricter, he indicated. The analyst says that MGM (MGM) provides the biggest opportunity for investors in the wake of yesterday's pullback, and he continues to identify the stock as his top gaming pick.

PRICE ACTION: In morning trading, MGM rose 3%, Wynn Resorts (WYNN) gained 3%, Las Vegas Sands (LVS) advanced 3.3% and Melco Crown (MPEL) climbed 3.3%. The stocks are still well off the levels at which they were trading before The Post's report was published.