Macau casinos were shutdown for two weeks recently, all in an effort to curb the latest outbreak of Coronavirus. But even after their re-opening last weekend, travel restrictions China make it virtually impossible for anyone to visit a casino there. What’s worse is that these restrictions will remain in place for weeks, if not months. The means that American companies, like Wynn Resorts, the Las Vegas Sands, and MGM Resorts, who have casinos there are losing millions of dollars each week.
Macau casinos lead the world in gambling revenue, bringing in about three times more than Las Vegas. US companies like Wynn Resorts, MGM, and the Las Vegas Sands all have casinos there, and have been bleeding cash for months amid lock downs and travel restrictions related to the Chinese government trying to get a hold of the latest Coronavirus outbreak.
The fact that the casinos there were able to reopen recently is of little consolation. The same travel restrictions which went into effect in March will remain for several more months, with the possibility that Macau casinos won’t see any real players come through their doors until later this fall.
All of this has added up to about 50% less revenue for casinos in the gambling hub, with Wynn, MGM, and the Las Vegas Sands trapped in the middle, watching their stock prices tumble amid zero revenue. And now, the Chinese government wants them to renew their licenses, which will mean an investment of millions of dollars, and a commitment of at least ten years. Adding insult to injury is that they also just raised taxes on gambling revenue to 40%.
