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Coronavirus Shuts Down Casinos in Macau, the World's Biggest Gambling Hub

Tags: China, Coronavirus, Macau, Melco Resorts & Entertainment, Wynn Resorts.
Posted on 05 February 2020 by "T".

Macau to close casinos for two weeks

The already weakened business of casino operators face the possibility of being forced to close for a longer period of time

The casino industry in the world's biggest gambling hub, Macau, has been asked by the government of Macau to shut down temporarily as Chinese authorities try to control the chaos brought about by the deadly coronavirus. The closure shall begin on February 5 and will last for 15 days.

This closure would be the second time ever to happen since the casino industry in Macau began in 2002. Back in 2018, Macau casinos closed for just 33 hours following the destruction wrought by super typhoon Mangkhut which cost the industry a revenue worth $186 million.

Analysts guesstimate that the shutdown due to the coronavirus could result to casino operators getting around half of their quarterly revenue wiped out, and should they be forced to remain closed for longer, they could potentially lose as much as 70% of their revenue.

From bad to worse
The casino industry in Macau was actually already reeling from the consequences that come with a weakened VIP gambling market in which last year marked the first time ever that casinos saw a decrease in gaming revenue since the rebound started in late 2016.

Then came the coronavirus, and considering Macau is the only place in China where gambling is legal, it is no surprise that the gambling hub's legs have been crippled much further - revenue went down to 80% since the virus outbreak started in mid-January.

Casino operators like Wynn Resorts and Melco Resorts & Entertainment have had their shares plummet down the most because they get most of their revenue from Macau. Rivals like MGM Resorts and Las Vegas Sands, which are more geographically-diverse, seemed to have fared much better.

Wynn Resorts issued a statement, "Our greatest concern and our top priority is the health and safety of our employees, their families and the citizens of Macau. We believe that our goals and the goals of the Macau government during this challenging period are fully aligned. We support the Government's decision to prioritize public safety and temporarily suspend the operations of all of Macau's gaming areas, which we believe is in the best long-term interests of everyone concerned."

MGM Resorts responded in an email, "MGM will follow the government's directions in the fight against this epidemic. We are closing our casinos and gaming areas, while maintaining non-gaming facilities to support hotel guests in both of our properties. We will continue to work closely with the Macau government as the situation progresses."

Reports say the coronavirus has caused the death of 490 people already and infected 20,000+ in China. This means the casinos will absorb the costs related to the outbreak rather than allow their employees to bear the burden, which will definitely hurt their earnings this 2020.

In total, there were 10 confirmed cases of the coronavirus in Macau.

The suspension of casino gambling activities in Macau could be extended, depending on the severity of the coronavirus outbreak.


Source:
https://www.nytimes.com/2020/02/04/business/coronavirus-macau-gambling.html
https://www.cnbc.com/2020/02/04/macao-requests-casinos-halt-activity-amid-coronavirus-outbreak.html

 


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14 comments on "Coronavirus Shuts Down Casinos in Macau, the World''s Biggest Gambling Hub"

 dule-vu05/02/2020 15:37:15 GMT
you can imagine how this will affect on on whole china economy,when nobody want to go there,nobody want to fly there,air companies stopped to fly there,you cant get any mail from china!macau for sure will lose lot of money in next months,so we will see how this will affect on everything!
 CALICUL05/02/2020 16:35:53 GMT
This different coronavirus that is obtained in a Wuhan lab of George Soros... ( as the newspapers speak ) can be very dangerous to humanity. Something is happening and it is a good decision for these casinos to be closed for two weeks.
 crankmuppet05/02/2020 18:13:54 GMT
"Analysts guesstimate that the shutdown due to the coronavirus could result to casino operators getting around half of their quarterly revenue wiped out,"

Guesstimate indeed - how can being closed for 15 days in a 91 day quarter (13 weeks) potentially wipe out 1/2 of their quarterly revenue?
 dule-vu05/02/2020 18:23:59 GMT
this will not be end soon and who know when will be end of this virus!when you see how many people are affected with this virus,you know that will be for long time in china and its just question how many people will get it in other countries!we can just hope that everything will finished in next few months!
 antonis32105/02/2020 22:25:56 GMT
Very sad news this Chinese virus . People are dying , panic is spread in the world with people being scared too much (sometimes overreacting due to their fear ), businesses get affected , and so as the income of many poor peolple . Wishing the best outcome for this criis , I hope they find a way to restrain this epidemic of this deadly virus , in China and everywhere , may they find a cure for this virus in the near future .
 roeish306/02/2020 15:58:13 GMT
I don't think that they had any other option but to shut it down. With the panic all over the world and the airports shutting down they world have just list too much money off they stayed open.
The whole economy is going to slow down very aggressively for a couple of months at least
 CALICUL06/02/2020 18:37:34 GMT
This situation should be taken very seriously, because this coronavirus is stronger than others and the Chinese government incinerates the dead persons. That is a serious thing and they is not joking with that. Here is a coincidence or a truth: virus spread exactly the day when China equaled or exceeded the US economy...
 dule-vu06/02/2020 19:57:47 GMT
this is big thing for every chinese no matter where he live!I see on news that in europe,in most of countries people watch different on them,even who live in that countries and have restaurants and that people maybe didnt even travel in china for two years!hope that this will stop soon!
 bowie198407/02/2020 00:24:17 GMT
Posted by roeish3:
I don't think that they had any other option but to shut it down. With the panic all over the world and the airports shutting down they world have just list too much money off they stayed open.

The thing making this worse is that the chinese government buying and building seaports - for decades now - all around the world to push the products they make faster onto different countries - so the virus has a nice way to get to literally anywhere in the world.
 erru910707/02/2020 15:30:14 GMT
Posted by crankmuppet:
"Analysts guesstimate that the shutdown due to the coronavirus could result to casino operators getting around half of their quarterly revenue wiped out,"

Guesstimate indeed - how can being closed for 15 days in a 91 day quarter (13 weeks) potentially wipe out 1/2 of their quarterly revenue?

I don't hink that they guesstimate based on simply the time closed. They probably also factored in that the casino will lose a lot of customers for quite some time due to people being unwilling to travel. All in all, I don't think half of the quarterly revenue is that far fetched to be honest.
 CALICUL07/02/2020 18:44:12 GMT
I saw a woman today who bleeding in a short movie and some people at the hospital with masks on faces. They were trying to help her. This situation is unfavorable if this coronavirus will spread, because in Europe there are already some people who are suspected of carrying this virus from Asia. They are in the hospital now.
 Mober09/02/2020 14:07:47 GMT
Not a surprise that this has happened. With all that spreading so far,
they are trying to protect their personnel.
How many companies have announced that they have shut down their
businesses in china so far...
And there might be more following soon.
 CALICUL10/02/2020 00:34:15 GMT
This means that the USA is guilty of this bad thing. They want to be the number one economy in the world and for this they are in a state of everything... They might as well do business together but somenoe of them are very frustrated.
 CALICUL17/02/2020 11:49:46 GMT
Beijing's political leaders are dealing with the issue of coronavirus... - make journalists disappear as soon as they start to become uncomfortable. Two Chinese journalists who tried to make the details of what happened at the beginning of the epidemic disappear without a trace. This is very sad.

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