Macau Casinos Clamps Down, Affecting The Casino Stocks

Since 1999, when Macau became a part of the Chinese mainland, it has been the only site in China where casinos are legally permitted. Since then, Macau’s annual gaming income has grown roughly six times that of Las Vegas.

Macau indeed enjoyed a moment of unprecedented growth and prosperity before the Covid pandemic struck.

Until this week, Macau had not been infected with the coronavirus for more than three months. The rapid reinstatement of limitations could be a setback for business executives and investors in the Chinese administrative region who anticipated a rapid increase in casino revenue.

After a few incidents were discovered, the government of Macau reinstated harsh COVID-19 regulations, including the closure of a large casino. Concurrently, China declared that visitors to the most prominent gaming center in the world would no longer require visas.

According to municipal officials in the world’s largest gambling market, the MGM China Cotai casino in Macau was shut down on Sunday after a dealer tested positive for COVID-19.

Personnel and guests were instructed to remain indoors until November 1. According to the administration, more than 1,500 individuals are held within the structure.

Galaxy Entertainment (0027. HK) and Wynn Macau (1128. HK) shares declined by more than three percent on Monday after the Macau government reintroduced harsh COVID regulations, including the shutdown of a major casino resort, over the weekend.

Total Lockdown and Quarantine

After a couple of cases were discovered in Macau, the most significant gambling hub in the world, officials reinstated some of the harsh Covid-19 regulations, including the closure of a prominent casino.

This follows China’s announcement that it will make it simpler for people to obtain visas, which prompted a jump in Macau’s gambling stocks despite the recent increase in Covid cases.

The authorities placed the MGM China-owned MGM Cotai resort on lockdown on Sunday.

This comprised the casino, restaurants, and retail establishments. All personnel and guests were instructed to remain indoors until November 1. In addition, the government has advised the 700,000 residents of Macau to take a brief antigen test daily until Tuesday.

Inside Asian Gaming revealed photographs of two men who attempted to flee but were apprehended and returned to the casino.

The corporation was quoted as saying that it would collaborate with the government of Macau on all preventative measures designed to reduce the danger of COVID transmission.

Macau’s Woes Continue

According to a city government statement, casino employees and guests will be isolated immediately. Additionally, all shops and restaurants associated with the hotel complex will be closed.

Last month marked the third coronavirus case in Macau after three months without any. This implies the casino is closed as infections occur barely two and a half years before mainland China tours are scheduled to resume in November.

Every month, casinos in Macau lose millions of dollars because of coronavirus regulations. This is due to the particular administrative region’s adherence to China’s “dynamic zero COVID” policy, which seeks to eradicate all outbreaks.

Since China’s immigration bureau announced recently that mainland residents could use an online visa system to travel to the former Portuguese colony beginning November 1, the likelihood of visiting Macau has increased. But with the recent setback, this could change.

Sands China, Wynn Macau, Galaxy Entertainment, MGM China, Melco Resorts, and SJM Holdings are the six casino owners in Macau awaiting the government’s decision on whether or not to grant them new licenses.

According to Macau’s business leaders, a decision might be made as early as this week.

If a business owner cannot obtain a new license, they must reinstate their property to the government. The new permits will be valid for ten years as opposed to twenty. This reduces the time operators have to recoup the billions of dollars they must invest due to government regulation.

Last Updated on by Ryan

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